Pending price cap, China partially suspended russian crude oil purchases — media

Chinese buyers of crude oil have suspended their purchases from russia, pending the implementation of the price cap, which is due to take effect in early December.

Bloomberg reports this.

Several cargoes of russian ESPO crude for December loading remain unsold, and sellers and Chinese buyers are hesitant to close deals before the exact price ceiling is known, traders said.

The price cap is planned to be implemented along with European Union sanctions on russian oil on December 5.

The cap is designed to keep crude oil flowing from OPEC+ producers to prevent a global supply shock but reduce revenues for russia, which is waging war against Ukraine.

Instead, russia has said it will not sell oil to countries that impose restrictions. Instead, according to Deputy Prime Minister Oleksandr Novak, moscow will redirect supplies to "market partners" or reduce production.

ESPO oil is popular among China's independent refiners due to its high diesel yield and short delivery distance.

China and India have become the main outlets for russian oil after most other buyers shunned the OPEC+ producer following its invasion of Ukraine.