• 4 minutes THE GREAT OIL PRICE PREDICTION CHALLENGE OF 2018
  • 8 minutes Big Oil Costs Can't Go Much Lower
  • 12 minutes Regime For Regime: China Says Willing To Provide Venezuela With What Help It Can
  • 5 hours So oil touched $80! (WTI break $71 twice). What does the future hold?
  • 13 hours China Tariff Threatens U.S. LNG Boom
  • 2 hours Time For Reaction: Trump Presses OPEC to Reduce Prices as Crude Trades Near $80
  • 8 hours Blackouts in Australia
  • 6 hours Google And Facebook Lead Digital's March To Half Of The U.S. Ad Market
  • 5 hours So about that psychological oil price ceiling of $80 ... Trump's Twitter sledgehammer is right on cue, again
  • 19 hours Famous Musk's Tweet Puts Tesla Under Criminal Investigation
  • 8 hours Global Hunger Continues to Grow Driven By Climate Change
  • 1 day Is your name Philip? No? Too bad!
  • 1 day China’s Oil Futures Contract Is Beginning to Show Its Teeth
  • 23 hours WTI now at $70+ headed for $50s
  • 2 hours Qatar/Germany: 10 billion Euro Investment In Germany's Energy Sector
  • 1 hour Economic collapse? Iran's Khamenei Tells Rouhani, Ministers, To Solve Economic problems
Oil Companies Slash Debt To Pre-Crash Levels

Oil Companies Slash Debt To Pre-Crash Levels

According to new research from…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Weak Demand Keeps Lid On Russia’s Far East Crude

Russia pipeline

Weak demand in China and weakening structure of the Dubai oil futures market have sent the premium for Russia’s Far East ESPO Blend crude grade to the Middle Eastern Dubai benchmark to one-year-low, according to S&P Global Platts data.

ESPO Blend, as well as the other two Russian grades exported from the Pacific region to Asia—Sokol and Sakhalin Blend—are priced off the Dubai benchmark in Asia, like the Middle Eastern crude grades sold to the world’s fastest growing oil market.

In the middle of last month, the Brent Crude premium to Dubai prices dropped to below $2 a barrel, the narrowest spread since last October, which prompted Asian buyers to book more crude oil supplies from Europe, Africa, the Mediterranean, and Russia’s Urals—all priced off Brent.

On Monday, the premium of the ESPO Blend loadings for September to front-month Dubai dropped to $1.95 a barrel—the lowest premium since August 4, 2017, when ESPO was priced at the same $1.95 a barrel premium.

According to traders and market sources who spoke to Platts, the two key reasons for the narrowing premium of the ESPO Blend to Dubai are the weakening Chinese demand since May this year, and the weakened trading sentiment for the Dubai market amid ample crude cargo supply in the region.

“Since May, we have been seeing Chinese demand slowing down,” a Singapore-based crude oil trader told Platts, adding that the premiums for ESPO have been dropping as a result.

ESPO Blend’s exports from the Pacific port of Kozmino in Russia are set to be 2.4 million tons in September, down by 11 percent from the 2.8 million tons in August, according to a preliminary schedule, with loadings lowered due to expected works on pipelines, industry sources told Reuters last month.

There is still some unsold ESPO volume for September, expected to be sold at premiums of between $1.80 and $2 a barrel to Dubai, a trade source in Singapore told Platts.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News