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OIL: Russian ESPO to China Offered at Premium on Sanctioned Vessels

OIL
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Russian ESPO has been offered at two different levels for a single destination for the first time. Chinese buyers are being asked to pay more for cargoes delivered on a non-sanctioned tanker and with a cheaper price on a sanctioned vessel, according to Bloomberg sources.

  • Shipments for March arrival from Kozmino to China are being offered at a premium of $2/bbl on a sanctioned vessel and at a premium of $5/bbl or higher on a non-sanctioned ship, Chinese refineries said.
  • It is unclear if any deals had been completed at the different pricing, the sources said.
  • Tanker freight for ESPO to China has surged since the latest US sanctions on Russia. Over 60% of tankers trading ESPO last year were sanctioned on January 10, reducing vessel availability, according to Kpler.
  • Some ships that previously frequented Russia’s western ports have redeployed east due to the surging freight rates, Bloomberg said.
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Russian ESPO has been offered at two different levels for a single destination for the first time. Chinese buyers are being asked to pay more for cargoes delivered on a non-sanctioned tanker and with a cheaper price on a sanctioned vessel, according to Bloomberg sources.

  • Shipments for March arrival from Kozmino to China are being offered at a premium of $2/bbl on a sanctioned vessel and at a premium of $5/bbl or higher on a non-sanctioned ship, Chinese refineries said.
  • It is unclear if any deals had been completed at the different pricing, the sources said.
  • Tanker freight for ESPO to China has surged since the latest US sanctions on Russia. Over 60% of tankers trading ESPO last year were sanctioned on January 10, reducing vessel availability, according to Kpler.
  • Some ships that previously frequented Russia’s western ports have redeployed east due to the surging freight rates, Bloomberg said.