Russian ESPO Oil Tops $120
Strong Chinese demand and disruptions to Middle Eastern supplies have pushed Russia’s ESPO crude above $120 a barrel.
Russia’s ESPO Blend crude oil price has climbed above $120 a barrel, reaching its highest level since April, as Chinese refiners increased purchases amid disruptions to Middle Eastern oil supplies, according to traders and Reuters data.
China has increased purchases of Russian crude as disruptions, particularly involving Saudi Arabian supplies, have raised concerns about feedstock availability for Chinese refineries ahead of the winter heating season.
The price premium for ESPO over the ICE Brent benchmark has also reached record levels of around $20–$30 a barrel. Russia's Urals crude has meanwhile risen to about $110 a barrel this week.
Chinese state-owned energy companies have led buying for November and December cargoes, securing a large portion of available ESPO supplies. This has left less supply for smaller independent Chinese refiners, known as “teapots”, which have turned to other spot markets.
The price increase comes as global oil markets face renewed supply concerns linked to the conflict involving Iran and disruptions in the Middle East. The tighter market has increased demand for alternative crude supplies, including Russian oil.
At the same time, US lawmakers have approved legislation that would allow President Donald Trump to impose tariffs on Russian oil purchases as Washington seeks to restrict Russia’s ability to finance its war in Ukraine. Traders cited by Reuters said such measures could affect Russian oil supplies to major buyers including India and China, while potentially pushing global oil prices higher.