According to Bloomberg, several shiploads of Russian ESPO oil for December remain unsold. Both sellers and buyers are reluctant to do business in the current situation. Soon – December 5th – to be announced price cap together with sanctions on Russian crude.
This action is to maintain flow crude oil from OPEC+ countries and a reduction in Russia’s income. However, the aggressor country has warned that it will not sell the raw material to countries that introduce the aforementioned limits. The Kremlin instead wants to redirect supplies to “market-oriented partners” or reduce production, as announced by Deputy Prime Minister Alexander Novak.
As reported by Bloomberg, ESPO is popular with independent Chinese refiners due to its high quality. “Traders said that many market participants seem open to referring to the price cap, even if they don’t officially support it – provided the level does not deviate too much from current prices,” the agency said.
