• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 10 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Is Europe heading for winter of discontent with extensive gas shortages?
  • 4 hours "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 1 day ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 1 hour Wind droughts
  • 7 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 13 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days Xi Is Set To Be Re-Elected As China’s Leader
  • 11 days Oil Prices Fall After Fed Raises Rates
  • 1 day 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 1 day Australian power prices go insane
  • 12 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day Europeans and Americans are beginning to see the results of depending on renewables.
The Next Bullish Catalyst For Oil Markets

The Next Bullish Catalyst For Oil Markets

Oil markets were relatively unscathed…

Another Disappointing Week For U.S. Oil Rigs

Another Disappointing Week For U.S. Oil Rigs

U.S. drillers remain cautious to…

Russia’s Spot Crude Prices Rebound As China And India Snap Up Cargoes

Russia’s ESPO crude blend shipped to Asia has recently seen spot deals at parity with Middle Eastern benchmarks in a sign that the export grade Russia is shipping out of its Far East port Kozmino is recovering in pricing amid high demand from Russia’s top buyers China and India.

At least two cargoes loading over the next two months have been sold with ESPO prices at par with the Dubai benchmark, trading sources told Reuters on Monday.  

In the early weeks of the Russian invasion of Ukraine, ESPO slumped to a discount of as much as $20 per barrel to regional benchmarks as traders and companies were confused about potential sanctions on Russian oil shipments.

Prices have rebounded from those lows, at least for some cargoes, as India and China continue to buy Russian oil. Moreover, the EU has recently decided to add exemptions to the sanctions on Russia, which would allow countries from outside the bloc to deal with sanctioned Russian entities, including banks and state companies such as Rosneft.   

While ESPO is being sold below or close to benchmarks, Middle Eastern producers are selling their crude to Asia at record or near-record premiums for contracted term supply, while spot prices are also at premiums to Dubai/Oman.

For example, Saudi Arabia—the world’s top crude oil exporter—last week raised the official selling price of its crude oil to new highs for September loadings.

Russia’s share of the Indian oil market is growing at the expense of Saudi imports, with Russian oil selling at a sizeable discount to Saudi crude. Russia became the second-biggest oil supplier to India in June, after Iraq, which remained the biggest oil supplier to the subcontinent.

China and India, always sensitive to pricing and on the lookout for cheap supply, are buying spot Russian cargoes out of Russia’s Far East for lower prices.

“Russian oil is very popular among Asian refiners and at these prices it’s a great value,” a trading source told Reuters.     

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News