Russia’s ESPO crude premiums fall to 4-month low on weak China demand
Russia’s Surgutneftegaz SNGS.MM sold three cargoes of ESPO crude at the lowest premiums in four months as demand from Chinese independent refiners remained weak, three trade sources said on Monday.
This is the second consecutive month that premiums for the Russian grade, which is mostly exported to China via the Far East port of Kozmino, have fallen. ESPO-DUB
Import demand from Chinese independent refiners, that account for a fifth of China’s imports, cooled in the second and third quarter following the country’s investigations into the trading of crude import quotas.
Surgutneftegaz sold three cargoes for loading in late September to early October via a tender, at premiums between $1.80 and $2.20 a barrel to Dubai quotes, the sources said.
Buyers likely included Mercuria and Vitol, they added.
Last month, ESPO crude cargoes loading in September traded at premiums between $2.30 and $2.90 a barrel. CRU/TENDA
Source: Reuters (Reporting by Florence Tan; Editing by Christopher Cushing and Shounak Dasgupta)