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Market Chatter: Chinese Refiners Seek Early Russian ESPO Crude Cargoes Amid Rising Middle East Risks

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Russia's flagship ESPO crude is experiencing an unusually early demand from Chinese purchasers, with refiners looking to secure supplies ahead of the normal schedule amid increasing risks to Middle Eastern flows, Bloomberg reported Friday.

August shipments from Russia's Kozmino terminal on the Pacific Coast have already been booked along with several cargoes for September. Buying interest has strengthened earlier than usual, narrowing the ESPO crude discount to about $1 a barrel below ICE Brent prices from $3 to $4/bbl two weeks ago, the report said, citing traders familiar.

Usually, there is little incentive for refiners to make advance purchases of the relatively liquid and low sulfur content light sweet grade as it is shipped in just about a week to China from Kozmino.

China's Russian crude imports have averaged about 1.4 million barrels a day in July so far, with monthly seaborne imports from the country heading towards levels not seen since March, the report said, citing Kpler data.

has reached out to Russia's Energy Ministry and China's National Energy Administration for a comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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