China is becoming a more active buyer of Russian oil due to Iranian resistance, Bloomberg reports.

According to insiders, the 3.8 million tons of Russian oil scheduled for February were successfully sold out during the first two weeks of the month. Russia has reduced prices for its ESPO grade for the eastern regions, making it more attractive to independent refiners in China.

The need for ESPO arose due to misunderstandings with Iranian suppliers who insist on high prices. Even though Iranian oil remains one of the cheapest in the world, Chinese producers were looking for an alternative. So far, no deals have been signed with Iran, Bloomberg reports.

For a long time, the Teapots, companies that control more than a quarter of China's refining capacity, have benefited from their desire to buy oil that other buyers avoid for fear of possible sanctions from the West. However, after the lifting of US sanctions on Venezuelan oil, demand for it increased.

The price increase increased the attractiveness of the Russian ESPO grade, which was already popular due to its relatively low cost and short delivery distance.

In December, more than 90% of vessels carrying ESPO cargoes arrived in China, the world's largest oil importer, according to ship tracking data.