Argus: Russia's Oil Exports to China Surge 92% in First Half of Year

en.Wedoany.com Reported - Dimension News, international energy consultancy Argus released a report showing that in the first half of 2026, Russia's exports of Urals and Kebco blended crude via sea and pipeline increased by 177,000 barrels per day, reaching 2.2 million barrels per day (approximately 56.3 million tons). The growth was primarily driven by shipments from the ports of Primorsk and Novorossiysk heading to Asian destinations.

India remained the largest buyer of Russian crude, importing 44.4 million tons in the first half of the year, an increase of 3 million tons year-on-year, but its share of Russia's total exports fell from 76% to 70%. China saw the most significant growth in imports, purchasing 7.04 million tons from Russia in the first half, a 92% increase year-on-year. Experts attribute this growth primarily to the resale of some cargoes originally destined for the Indian market to China during the first quarter.

Meanwhile, Russia's crude exports to Black Sea and Mediterranean ports fell 14.4% to 6.35 million tons, with exports to Turkey plunging 45.4% to 4.05 million tons. Dmitry Prokofiev, Director of External Communications at NEFT Research, stated that Chinese refineries are actively purchasing Russian crude to replace Middle Eastern crude, whose supply has become unstable due to the Middle East conflict, while Indian refineries maintain high demand but are more stringent on pricing. Additionally, under pressure from new rounds of sanctions, some cargoes were transshipped via Singapore, with exports to that destination growing 112% month-on-month in July.

Dmitry Sklyabin, Portfolio Manager at Alfa Capital, noted that the first-half export data performed well against the backdrop of physical growth and heightened sanctions pressure, but much of the positive effect stemmed from short-term market disruptions caused by the Middle East crisis. The discount of Urals crude relative to Brent and the US crude basket has widened to $25 per barrel, and experts expect the discount may continue to expand amid falling global oil prices and the recovery of Middle Eastern crude supply.