ESPO Blend Crude Oil Returns to Premium as China Demands More

Russian ESPO Blend crude oil has returned to a premium against Brent in October due to strong demand from Chinese buyers and uncertainty over oil supplies from Iran. This is the first time since June that ESPO Blend has traded at a premium.

Nearly all available cargoes for October delivery have been sold to Chinese buyers at a $1-a-barrel premium to ICE Brent on a delivered basis into Chinese ports, traders said.

This shift in demand is attributed to concerns over the Strait of Hormuz disruptions and the reliability of Russian oil supplies. 'Not sure how long the Mideast crisis going to last and how much Iran oil will ship out, so Russian supply is the most reliable one,' one trader noted.