Russian ESPO crude has been purchased by at least one Chinese buyer at the largest discount seen this year.
This follows a sharp decline in demand for the grade due to US sanctions on oil companies Rosneft and Lukoil. The petroleum cargoes were sold at a discount of $7 to $8 per barrel. The buyer was an independent Chinese refinery. The ESPO crude, bought last week, was likely the first purchase by a Chinese refiner since late October. ESPO remains in demand among Chinese refineries because of its high diesel yield and short delivery distance. Meanwhile, Sri Lanka is negotiating with Russia to establish uninterrupted supplies of Russian oil. Additionally, the Sri Lankan ambassador to Russia reported that the state-owned Sri Lanka Petroleum Corporation is also discussing the supply of LNG and refinery modernization to ensure steady utilization of Russian energy resources.
Simultaneously, Estonia has offered to help Hungary avoid fines if Prime Minister Viktor Orbán abandons energy contracts with Russia. Estonian President Alar Karis pointed out that some existing agreements between Budapest and Moscow may remain valid until the 2040s.
He stressed that Hungary should terminate these contracts with Russia, as they support energy dependence on the aggressor country and conflict with European unity in opposing Russian aggression.(URN)
