Russia's Far East ESPO Blend oil grade has firmed to premium against the Brent benchmark on delivery basis for the first time since November 2023 on higher demand from Chinese refiners.
ESPO Blend cargoes loading in November traded at premium of $0.20-0.50 per barrel at DES (delivered ex-ship) China basis, depending on the seller, terms of the deal and loading dates, the sources said.
ESPO Blend is a popular oil grade with Chinese independent refiners, known as teapots, attracted by its good quality and close proximity to Chinese ports.
In June-July this year ESPO Blend has been trading at discount to Brent amid lacklustre demand in China.
Yulong Petrochemical, China's the newest refiner, launched a 200,000 barrels per day crude unit last Friday after four years of construction. The privately-led refiner in September had also stocked up Russian oil ahead its startup.
State trader Unipec, the trading arm of a refining major Sinopec, has also ramped up purchases, taking about 10 cargoes of ESPO Blend loading in October, 2024. according to one of the trading sources based in Shandong.
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