MOSCOW/SINGAPORE, Dec 5 (Reuters) – Russia’s ESPO blend crude oil cargoes loading in December traded at a discount of $5-$6 a barrel to ICE Brent in Chinese ports, the weakest differential on record, four sources said on Friday.
The discounts widened in China on falling demand after state refiners suspended buying because of recent Western sanctions while private players have also become more cautious.
ESPO Blend oil cargoes had been placed at discounts of $0.50 to $1 a barrel below ICE Brent as recently as late October, traders said,
The United States imposed sanctions on Russian oil suppliers Lukoil and Rosneft in October, leading to a fall in demand for Russian oil, even among main buyers India and China.
Traders said that, unusually, some ESPO Blend cargoes loading in December have yet to be placed.
(Reporting by Siyi Liu and Aizhu Chen in Singapore and Reuters reporters in MoscowEditing by David Goodman)
