Russian ESPO Blend crude loadings from the port of Kozmino rose to 40 ships in October from 35 in September as liftings recovered after pipeline maintenance, though some ships appeared to face delays in offloading, S&P Global Commodities at Sea data showed Nov. 3.
Sanctions trigger delays and market exits in ESPO crude trade
Of the 40 ESPO Blend shipments in October, each about 100,000 metric tons, 29 ships had discharged or were set to discharge in China, while six were bound for India, CAS data showed.
The remaining five ships — the Aframaxes Tiger 6, Tiger Wings, Jewel, Seazen and Lucky Fairy — were seen to be facing delays unloading at Chinese terminals or had been diverted to other ports in China or India, according to CAS data.
The delays or diversions come after the US and UK announced additional sanctions on the Russian oil trade over Oct. 22-23, with Russian producers Rosneft and Lukoil, along with some Chinese refiners, among those targeted.
The sanctions have led to a reshuffling of crude trade flows across Asia, with some companies scaling back or halting purchases of Russian oil altogether, while others have raised buying due to a lack of alternatives.
A trader previously involved in the Russian crude trade said Nov. 3 that they were exiting the ESPO Blend market because of the sanctions.
ESPO crude flips from premium to discount as sanctions crush demand
October ESPO Blend cargoes had traded at premiums of $1.40-$2/b to ICE Brent crude futures, DES China, in September, Platts, part of S&P Global Commodity Insights, previously reported.
More recently, November ESPO Blend cargoes were heard traded at discounts of up to $2/b to ICE Brent crude, DES China, following the sanctions, according to traders and refinery sources monitoring the Russian crude trade.
This marked a decline from the mid- to high $1s/b premiums to ICE Brent crude, DES China, seen for November ESPO Blend cargoes traded in the first half of October.
Trade sources said that subsequent traded levels are likely to weaken further. “Even at $2/b [discount to ICE Brent crude, DES China], no one wants to buy,” a refinery source said.
Three independent refinery sources told Platts on Nov. 3 that over 10 ESPO Blend cargoes for November delivery remained unsold, despite increased purchases by China’s Yulong Petrochemical in recent weeks.
China’s ESPO crude demand stalls amid quota shortage and refinery maintenance
Trade activity for ESPO Blend cargoes is expected to pick up once China’s central government issues its first crude import quotas for independent refiners for 2026, several trade sources said.
A shortage of import quotas for the remainder of 2025 has been one of the factors pressuring differentials and trade activity for ESPO Blend cargoes since September, Platts reported earlier.
“There won’t be any purchases from small independent refineries before fresh crude import quotas are allocated,” a trade source in Qingdao said.
China’s independent refineries likely received a combined 18 ESPO cargoes in October, totaling 1.8 million mt, according to preliminary data from Platts, compared with 15 cargoes in September.
China’s state-owned oil companies are expected to reduce crude throughput in November due to weakening domestic demand, feedstock supply disruptions and planned refinery maintenance.
A combined 840,000 b/d of refining capacity will be offline for maintenance in November, up 44.8% from 580,000 b/d in October, Platts data showed.
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Source: spglobal
