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Russian Oil Going About 10% Cheaper in China as Flows Upended

  • ESPO oil offered at discount to similar Brazilian crude grades
  • Iran already forced to cut its oil prices; West Africa crimped

China’s appetite for cheap Russian oil continues to reverberate through the global market, with buyers being offered their favorite crude from the OPEC+ producer at a deep discount to similar-quality barrels.

Russian ESPO oil from the nation’s east is being offered at a discount of $10 to $12 a barrel to competing varieties from Brazil, said traders with knowledge of the matter. The flow of cheap Russian crude to China has already forced Iran to discount some of its grades and crimped imports from West Africa.