Chinese oil buyers, led by China Petroleum & Chemical or Sinopec (HKG:0386, SHA:600028) unit Unipec, are rushing to purchase Russian ESPO oil amid an escalation of tensions in the Middle East, Bloomberg reported Friday, citing traders familiar with the market.
August shipments from the Russian Pacific port city of Kozmino have run out, while September cargoes are loading faster than usual, the report said, citing the traders.
Russian ESPO, or Eastern Siberia-Pacific Ocean oil, is being sold at a discount of about $1 per barrel to ICE Brent crude from up to $4 two weeks ago, Bloomberg said.
Unipec parent Sinopec did not immediately respond to a request for comment from.
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