On Monday, spot premiums for Russian ESPO crude grade hit the highest level in 22 months on the back of strong Asian demand, according to trade sources and data from Refinitiv Eikon.
The rebound followed China’s approval for more import quotas for its independent refiners. China is the biggest buyer of the grade.
According to the sources, late on Friday, Russian oil producer Surgutneftegaz sold two cargoes at USD5.50-5.60/barrel higher than Dubai quotes for December loading. They are the highest premiums since trades in January 2020, likely were bought by a Japanese trading company and a European trader.
In comparison, in September, the company sold loading cargoes for November at premiums ranging between USD4-4.70/barrel.
