China: Although the effectiveness of Western-imposed sanctions on Russia is still being debated, it seems that China is experiencing an increase in their imports of Urals-grade Russian crude oil. In fact, China's import rates could potentially reach their highest levels in 11 months.

According to recent reports, China's purchase of Russian Urals grade crude oil has increased by about 36% this April. That's a substantial increase of roughly 70,000 barrels per day in comparison to China's March loadings. The April-loaded Urals are anticipated to arrive in China sometime between May and early June.

China's crude oil imports from Russia hit a new high last month, with the purchase of various grades including ESPO Blend and Arctic. The current lower prices of Urals crude oil played a crucial role in this increased import.

However, during April, the price of Urals has surged due to heightened competition for the Russian grade, partly caused by OPEC+ indicating an extension of crude oil production cuts till year-end. As per reports, the present rate of Urals is surpassing the set price ceiling by Western countries.

As of December 6th, a price cap of $60 has been implemented on Russian crude oil. To qualify for EU and G7 insurance and financing for Russian crude shipments, buyers must have paid less than $60 for the cargo.

In March, the average price of Russian Urals Oil was $47.85 per barrel. Despite this, China and India have been the primary purchasers of Russian crude oil in recent months, with India accounting for over 70% of Urals shipments this month and China receiving 20% of them. Notably, neither China nor India have joined the Price Cap Coalition. This year, Russia has been the largest crude oil supplier to China during the months of January and February when Asia sought to make use of the cheap Russian oil.