Russia’s Cheap Oil Gains Market Share In China
https://oilprice.com/Energy/Crude-Oil/Russias-Cheap-Oil-Gains-Market-Share-In-China.html-ESPO crude grade gains popularity in China.
-ESPO goes for around $1-$2 discount per barrel to the international benchmark Brent.
-High demand for the cheaper Russian crude relative to rival grades has already reduced Chinese imports from West Africa
China continues to buy discounted Russian crude and is gobbling up the ESPO crude grade from Russia’s Far East, upending global trade flows.
ESPO, which Russia ships from its Far Eastern ports, is being offered at a 10-percent discount compared to similar-quality crudes from Brazil or West Africa, traders familiar with the Chinese buying told Bloomberg on Wednesday.
ESPO goes for around $1-$2 discount per barrel to the international benchmark Brent, while Brazil’s Lula and Sapinhoa crudes, for example, are being offered at a $10 per barrel premium over Brent, the traders told Bloomberg.
The high demand for the cheaper Russian crude relative to rival grades has already reduced Chinese imports from West Africa, and even forced Iran to additionally discount its crude going to China—pretty much the only current buyer of Iranian oil, which continues to be under U.S. sanctions.
China is buying up Russian oil at a discount.
