China Offered Cheaper Russian Oil as Sanctions Fallout Persists
- Offers for ESPO crude trimmed to premium of $2-$3 to Brent
- Fees to transport shipments ballooned after broad US sanctions
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Chinese refiners are being offered Russian ESPO crude cargoes at lower prices as growing concern around US sanctions increase logistical and administrative hurdles, putting off buyers.
Shipments from Russia’s Pacific port of Kozmino delivered on a non-sanctioned tanker are being offered at a premium of between $2 and $3 a barrel to Brent, according to traders. Cargoes are March-loading, they said, asking not to be identified as they’re not authorized to speak to the media.