- Reuters: Solely 5 to seven December loadings of EPSO Mix cargo have been bought to Chinese language customers – versus the standard 30 per 30 days.
- China and India make up the checklist of prime consumers for Russian crude.
- Reuters: Chinese language refiners are slowing purchases of Russian crude for December supply.
Based on Bloomberg, the anticipated shift in Russian crude oil flows towards Asia is underway nicely forward of the December 5 oil embargo.
Earlier than Russia’s invasion of Ukraine, lower than 40% of Russia’s crude oil made its solution to the prized Asian market. However at the moment, round 70% of Russia’s oil is destined for Asia – China and India prime the checklist of consumers.
Complete crude oil inventories from Russia fell to a three-week low of two.9 million bpd for the week ended 11 November. That has elevated to a brand new file of two.39 million bpd through the week.
However in keeping with Reuters, Chinese language refiners are slowing their purchases of Russian crude for December loadings, and China is paying a decrease premium as EU sanctions, which take impact on Dec. 5— Together with would be the specter of the G7 value cap. additionally to return into power from the identical date.
Based on Reuters, this slowdown in Russian crude oil flows is inflicting a crude oil build-up, placing stress on crude costs, as China and India have change into such a big a part of Russia’s exports for the reason that invasion. .
The truth is, merchants advised Reuters that solely 5 to seven December loadings of EPSO Mix cargo have been bought to Chinese language customers – versus the standard 30 per 30 days.
China’s refiners have been paying about $1.70-$1.90 a barrel above ICE Brent on a DES foundation – down from $2.70 two weeks in the past, though merchants advised Reuters that “the whole lot is underneath the radar now”, making these offers unlikely. Particulars have been tough to acquire.
By Julian Geiger for Oilprice.com
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