China Rushes to Secure Russian Oil as Middle East Supply Risks Escalate

AI Summary

Chinese refiners have rapidly purchased all crude oil cargoes from Russia’s Far East port Kozmino for August amid rising risks to Middle Eastern oil supplies due to tanker attacks in the Red Sea. This increased demand has narrowed the discount on Russian ESPO crude blend against ICE Brent prices.

Chinese refiners have bought up all crude oil cargoes set to load from Russia’s Far East port of Kozmino in August weeks earlier than usual, traders with knowledge of the market told Bloomberg on Friday, as risks to Middle Eastern supply spiked this week with attacks on tankers in the Red Sea. China has been snapping up the cargoes at a faster pace, which raised the price of the Russian Far Eastern crude blend ESPO to a discount of just $1 per barrel to the price of ICE Brent, up from a discount of between $3 and $4 per barrel two weeks ago,…