Russian ESPO Crude Spot Premiums Fall More as Virus Hits China Demand

SEATTLE (Oil Monster): Asia’s spot premiums for Russia’s ESPO Blend crude oil ESPO-DUB loading in April slid further to its lowest levels since July 2017 as demand from China, the key buyer of the grade, was hit by the coronavirus epidemic, trade sources said on Tuesday.

Russia’s top oil producer Rosneft awarded its spot tender selling five cargoes of April-loading ESPO crude at premiums of around $1.70-$1.80 to Dubai quotes, likely to Chinese buyers and a trader, the sources said.

ESPO crude is a popular grade among Chinese “teapots”, or independent refineries, that collectively make up a fifth of the country’s crude imports. 

 Courtesy: www.reuters.com