Demand for Russian oil is rising in China!
The country’s market share stood at 83% in the first seven months of the year. However, this figure is down from 88% a year earlier.
Chinese refineries are increasingly turning to Russia’s ESPO crude oil to compensate for disruptions in Iranian oil supplies. As a result, ESPO prices have risen significantly. According to Bloomberg, citing traders, ESPO crude for November delivery is trading more than $7 above Brent crude. In some offers, the premium has reached as much as $10. ESPO can be delivered from Russia’s Far East to China in less than a week.
China remains the largest buyer of ESPO. The country accounted for 83% of the market in the first seven months of the year, down from 88% a year earlier. During the same period, India’s share increased from 12% to 16%.
Indian refineries have increased ESPO imports in recent months. The main reasons are a decline in China’s oil imports and supply disruptions in the Middle East. India, which typically favors Urals crude, is now choosing ESPO as an alternative source. However, attacks by Ukraine on Russia’s export infrastructure and growing competition with China led to a decline in India’s imports of Russian oil in August.