RT.com
19 Sep 2023, 19:43 GMT+10
The Eastern Siberia-Pacific Ocean crude blend is trading above the benchmark Brent grade, the outlet says
A global shortage of diesel is benefiting one of Russia's key export crude blends, ESPO, as it is being traded at a premium to global benchmark Brent, Bloomberg reported on Monday, citing unnamed market players.
The Eastern Siberia-Pacific Ocean (ESPO) crude blend, named after the pipeline that carries it to export markets, climbed to a premium of about $0.50 a barrel to Brent on a delivered basis for October shipments to China, traders told the outlet.
Brent crude was trading above $94 per barrel on Monday.
ESPO, which is especially suitable for diesel fuel production, saw its biggest price increase since the G7 and the European Union introduced a price cap on Russian oil and petroleum products in an effort to cut Moscow's energy revenues, according to Viktor Katona, lead crude analyst at energy analytics firm Kpler.
"[The] last time when ESPO was positive to Brent was back in November 2022," said Katona. According to the analyst, along with private refineries, Chinese state processing plants have also boosted their purchases, taking up to seven more cargoes of October-loading ESPO than usual.
The global energy market is faced with a shortage of diesel as refineries fail to make enough of the key industrial fuel. The situation was exacerbated after OPEC+ heavyweights Saudi Arabia and Russia slashed production and exports of denser, more-sulfurous crude used to produce diesel fuel vital for industry and transport, Bloomberg reported.
Diesel inventories around the world are substantially lower than the usual volumes for this time of the year, despite an industrial slowdown in key markets in the EU and the US, Reuters analyst John Kemp wrote earlier this month.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Hong Kong Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Hong Kong Herald.
More InformationBEIJING, China: China's manufacturing sector is expected to shrink for a second consecutive month in February, signaling continued...
(CN) - The Justice Department announced Wednesday indictments against a dozen Chinese nationals, claiming they worked to steal data...
Aerial drone photo, taken on March 6, 2025, shows the Techo International Airport in Kandal province, Cambodia. (Photo by Van Pov/Xinhua)This...
BEIJING, March 8 (Xinhua) -- Here are the latest Chinese sports headlines from the past week: 1. Olympic speed skating champion Gao...
(250308) -- BEIJING, March 8, 2025 (Xinhua) -- Tian Shuxian (2nd R), a deputy to the 14th National People's Congress (NPC), speaks...
Just as discoveries of fossil fuel reserves helped to shape the 20th century, the race for critical minerals is shaping the 21st. These...
NEW YORK, New York - U.S. stocks fell sharply at the open and stayed in the red for much of the day Friday, however as the day wore...
NEW YORK, New York - The U.S. dollar continued to come under pressure Friday with President Donald Trump's flip flops on trade tariffs,...
SEATTLE, Washington: Nordstrom delivered stronger-than-expected holiday-quarter sales and announced a leadership shakeup, with Chief...
MILAN, Italy: Prada CEO Andrea Guerra suggested this week that the Italian luxury brand is keeping its options open regarding potential...
OSLO/COPENHAGEN: Tesla is experiencing a sharp drop in sales across Scandinavia and France as shifting consumer sentiment and an aging...
NEW YORK, New York - U.S. stocks fell sharply Thursday as investors and traders struggled with Presient Trump's controversial trade...