Russian Oil Price Surges Past $120 per Barrel Amid China's Increased Demand

The price of Russian oil has surpassed $120 per barrel for the first time since April due to increased demand in China. This comes amid disruptions to supplies from the Middle East, particularly involving Saudi crude, which is threatening to leave Chinese refineries without feedstock ahead of the winter season.

According to three traders and Reuters calculations, China's purchases of Russian oil have surged as it seeks to secure its supply chain. Chinese state-owned energy companies are leading the purchases, securing most of the volumes for November and December.

The premium for ESPO Blend over ICE Brent, used as the trading benchmark for pricing physical cargoes, has reached a record $20, $30 per barrel. Prices for Urals crude have also reached $110 per barrel this week.