GreenergyDaily

Mar. 13, 2025

1. Chinese buyers are back in the market for Russia’s ESPO crude, thanks to prices that have cooled as shippers and middlemen find workarounds to help blunt the impact of US sanctions, Bloomberg reported today.

2. April-loading cargoes shipped from Russia’s Pacific port of Kozmino to China are being offered at a premium of $2.50 a barrel to benchmark Brent compared with around $3 for March, according to traders handling the grade.

3. The lower cost comes as a relief for China’s smaller independent processors, known as teapots. Struggling with tight margins, they have been eager to find an alternative to Iranian supply hobbled by tighter US restrictions. The Trump administration has vowed “maximum pressure” on Tehran.

4. Broad US penalties implemented by the outgoing Biden administration in early January disrupted the flow of ESPO to China after 161 tankers, including many plying the trade, were blacklisted. Since then, non-sanctioned vessels have helped to fill the gap, while smaller, private Chinese berths have been used to keep cargoes from sanctioned vessels coming in.

5. Russia’s shipments to China are estimated at 1.15 million barrels a day this month, 16% higher than February and the biggest daily volume since December, according to data tracked by Kpler. ESPO accounts for the largest share.