China is eyeing an opportunity to steal profits behind oil price limits that Western countries will impose on Russia.
This follows reports that China has temporarily halted purchases of Russian oil as the United States and its allies move closer to finalizing price caps.
It is understood that several Russian ESPO crude cargoes for December remain unsold, with Chinese sellers and buyers hesitant to close deals before the exact price cap level is known.
The price cap is set to go into effect alongside European Union (EU) sanctions on Russian oil on December 5, with those complying with the measure gaining access to insurance, banking and shipping services from the bloc.
The move was made to reduce the Kremlin's income, which is largely contributed by oil exports, while at the same time keeping crude oil from OPEC+ producers flowing to avoid a global supply shock.
However, Russia insists that it will not sell to countries that implement such limits. Instead, Moscow will redirect supplies to market-oriented partners or reduce production.
Looking at the movement of black commodities, Brent oil futures remained gloomy at around $88 per barrel while US WTI traded at $81 per barrel.
