Key Russian Oil Grade Slumps as US Sanctions Hamper China Buying

The price of a key Russian oil grade has plunged after Western sanctions prompted Chinese refiners to cancel some purchases.

Spot sales of ESPO, which ships from Russia’s Far East, were offered at a 50-cent-a-barrel discount to the ICE Brent benchmark this week, according to traders who participate in the market and asked not to be named because they aren’t authorized to speak to the media. The grade was priced at a premium of more than $1 a barrel last week, before the latest round of sanctions.