Traders fixed the trading of the Russian ESPO Blend at 32% higher than the price ceiling
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Russian oil grade ESPO Blend is trading higher than the price ceiling set by the EU, G7 countries and Australia. Deals are closed at $79/bbl with a cap of $60/bbl, ie 32% higher.
According to Reuters, citing traders’ data, ESPO Blend is selling for more than the benchmark Russian grade Urals, which is currently trading at $55 per barrel. Due to the EU’s refusal to buy sea shipments of Urals, Russian producers had to redirect deliveries of the grade, increase discounts and pay for rising freight rates. As a result, export prices for Urals are at levels near the price ceiling or even lower due to market reasons, the agency notes.
ESPO (Eastern Siberia Pacific Ocean) is a mixture of oils produced in Eastern Siberia. It is transported via the Eastern Siberia-Pacific Ocean oil pipeline. The annual export volume is 65 million tons. Another 30 million goes to China via a branch of the Skovorodino-Mohe oil pipeline.
The restrictions of the European Union, the G7 countries and Australia on Russian oil have been in effect since December 5.
Read more about the marginal price of oil from Russia in the publication “Kommersant FM” “Russian oil has picked up the limit”.
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