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Chinese Crude Buyers Holding Back Prior to Russian Price Cap

OIL

Chinese crude buyers have paused some purchases of Russian oil as they wait on details of the US led oil price cap according to Bloomberg sources.

  • Several cargoes of Russian ESPO crude for December-loading remain unsold the sources said.
  • The price cap is expected to be launched alongside the EU ban on Russian oil imports from December 5. The price of the cap has not been announced yet with discussions ongoing.
  • Russia’s Novak reiterated that they would not supply oil to countries that support the oil price cap which has limited China and India’s participation.
  • ESPO is popular with China’s independent refiners due to the high diesel yield and short shipping distance.
  • Traders have said Chinese buyers appear open to referencing the price cap but have fallen short of supporting it.

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