Russian ESPO Crude Prices Remain Steady From Chinese Demand
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Russian ESPO Blend crude prices held steady for October-loading cargoes as robust demand from China offset growing pressure from Western sanctions and ample supply, traders said on Monday.
Cargoes loading from the Far Eastern port of Kozmino in October were sold at a premium of around $2 per barrel to ICE Brent on a delivery basis to Chinese ports, little changed from September levels, they said.
Intense Ukrainian drone strikes have hit several major Russian oil refineries in recent weeks, leading to less feedstock being processed and a rise in crude exports instead.
The price stability comes despite a fresh wave of Western enforcement targeting Russian oil exports.
Last week, Britain and the European Union lowered the price cap on Russian crude from $60 to $47.60 per barrel, requiring buyers to submit attestations within 30 days of loading to maintain access to Western insurance and shipping services.
The EU rolled out its 18th sanctions package, blacklisting dozens of entities including Indian refiner Nayara Energy and several Chinese firms accused of helping Russia bypass restrictions. The measures tighten controls on energy and tech exports and ban fuels refined from Russian crude starting January 2026.
U.S. President Donald Trump, meanwhile, said on Sunday that he was ready to move to a second phase of restrictions. And EU Council President Antonio Costa said new sanctions were being closely coordinated with the United States.
Traders noted that Chinese demand for Russian oil remains strong despite rising Western sanctions threats. In addition to ESPO, Chinese buyers are set to receive Arctic grades and Urals crude via the Northern Sea Route.
In the latest deepening of financial ties between Beijing and Moscow, Chinese rating agency CSCI Pengyuan assigned its highest AAA rating to U.S.-blacklisted Russian oil and gas giant Gazprom on Friday, paving the way for debt issuance on China's domestic bond market.
One trader said ESPO premiums could soften if the U.S. tariffs push Indian buying lower and more oil flows to China. The quality difference between Urals and ESPO means increased Urals flows may not necessarily impact ESPO values, the trader added.
Urals is a sour grade, while ESPO is a kind of light and low-sulphur oil.
(Reuters)
