Crude Oil Premium in Russia Returns as Diesel’s Allure Grows
- Russian variety shipped to China sells above Brent benchmark
- State-refiners have increased purchases, Kpler’s Katona says
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A global surge in diesel is benefiting one of Russia’s key export crudes, with the oil that’s pumped from the nation’s Far East trading at a rare premium to global benchmark Brent.
ESPO, a diesel-rich grade typically favored by the smaller, independent refiners in China, has climbed to a small premium to Brent for cargoes arriving next month, according to traders. That’s a reversal from earlier this year, when it saw sizable discounts amid the market upheaval that followed Russia’s invasion of Ukraine in 2022 as global buying patterns shifted.