Chinese Refiners Pay Record Premiums for Russian ESPO Crude
Chinese refiners are paying record premiums of up to $10 per barrel over Brent crude for Russia's East Siberia-Pacific Ocean (ESPO) blend. This shift is driven by the U.S.-imposed naval blockade on Iranian oil, which has forced independent Chinese refiners to seek alternative supplies. ESPO can be delivered from Russia’s Far East coast in under a week and currently commands an average premium of over $7 per barrel. China remains the largest buyer of ESPO crude with 83% market share for the first seven months of 2026, though its dominance has slightly declined due to increased purchases by Indian refiners. India's share rose from 12% in 2025 to 16%, as supply disruptions and reduced Chinese imports created an opportunity. India’s ESPO intake was also influenced by logistical challenges with Middle Eastern oil deliveries, prompting a shift away from its preferred Urals blend despite higher costs and longer delivery times. However, Indian refiners are expected to reduce Russian crude imports in August due to Ukrainian attacks on export infrastructure and competition from China.
Topics: Chinese refiners crude oil global trade Russian ESPO crude