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Market Chatter: Russian Pacific Crude Offer Price Jumps as Chinese Refiners Seek Spot Cargoes

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The asking price for oil from Russia's Pacific Coast has risen sharply as Chinese refiners rush to buy spot cargoes with the number of alternative suppliers now few, Bloomberg reported Thursday, citing traders.

For November-loading, asking prices for ESPO crude were more than $20 a barrel above Brent futures, on a delivered basis, almost double the premium in the previous week, the report said.

The Russian grade needs under a week to reach China and demand has risen as a US blockade interrupts access to favored Iranian oil to Chinese independent refiners. Disruption in the Strait of Hormuz has forced Chinese processors to procure crude from locations like Canada, Brazil and Argentina, the report said.

Recently, a Chinese refiner paid premiums of over $20 a barrel to Brent to procure West African oil, including from the Republic of the Congo and Angola. West African and Brazilian crudes are now being offered at premiums of around $30 over the global benchmark, the report said, citing traders.

has reached out to the Russian Energy ministry and China's National Energy Administration for comments.

(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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