Commodities
Home›Commodities›Energy›Sinopec increases Russian ESPO purchases for July to S…
Sinopec increases Russian ESPO purchases for July to September delivery
The state refiner is buying 30 to 40 shipments, or about 241,000 to 320,000 bpd, to improve delivery certainty as Middle East shipping constraints persist.
China’s Sinopec has increased purchases of Russia’s Far East ESPO crude for delivery in the third quarter, aiming to secure cargo arrivals despite ongoing shipping constraints in the Middle East, according to OilPrice citing trade sources and vessel-tracking data analysts. The purchases cover deliveries between July and September.
OilPrice reports Sinopec has acquired as many as 30 to 40 shipments of ESPO, equivalent to roughly 241,000 to 320,000 barrels per day. The ESPO blend loads at Russia’s Kozmino port and typically reaches China’s east coast refineries in about a week.
The outlet says the short delivery time and lower cost versus similar grades from West Africa and Brazil make the Russian barrels more attractive. OilPrice also highlights that demand has shifted toward supplies with greater delivery certainty and lower freight costs.
OilPrice adds that Sinopec’s purchases are not tied to any sanctioned Russian entities. It also notes China has cut overall crude imports amid the Middle East conflict, as refiners reduced run rates and fuel export restrictions limited exports, though some easing of those restrictions could support imports later.
Latest closeWTI crude $75.12 ▼0.9%