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Market Chatter: Sinopec Reportedly Extends Russian Oil Buying, Squeezing Chinese Independent Refiners

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China's Sinopec has extended its purchases of Russian crude into October, tightening supplies for smaller independent refiners already facing dwindling Iranian shipments, Reuters reported on Wednesday.

Sinopec has reportedly agreed to buy 10-15 cargoes of Russia's ESPO crude for October, equivalent to about 235,000-353,000 barrels per day. Total Russian purchases, including Sokol and Urals, could exceed 20 cargoes.

Sinopec's buying has pushed ESPO premiums higher as small refiners scramble for alternative supplies. Iranian crude shipments have stalled amid a US naval blockade, forcing some refiners to seek costlier barrels from Brazil, Canada and Iraq, squeezing margins.

Sinopec did not immediately respond to a request for comment from.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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