The premium for Russian oil fell in China amid disagreements between sellers and buyers. The premium for the ESPO grade (ESPO) for delivery to the Chinese province of Shandong for the month to October 23 fell by $10 - to $20 per barrel relative to Brent prices on the ice exchange. This was reported by Kommersant with reference to data from S&P Global. Nevertheless, Russian exporters expect to reverse the trend and raise prices for future supplies, Reuters reports. ESPO deliveries in late December and January are offered at premiums of over $25, and in some cases over $30 per barrel. The increase in expectations for sellers' prices is related to the increase in transportation prices, as well as to the predicted increase in demand due to the suspension of the American sanctions against buyers of Russian raw materials. The Chinese refineries are not yet ready to accept winter prices. This resulted in an unusually large gap between bid and offer prices. The disagreements are accompanied by a reduction in physical export volumes. According to Argos agency estimates, from October 1 to October 16, ESPO's average daily shipments fell by 4.5%. During the week the decrease accelerated to 18%. The position of Russian suppliers is also complicated by competition from alternative exporters. According to Vortexa, in October the supply of oil from the Middle East excluding Iran will increase and approach last year's level. Raw materials from Saudi Arabia and Iraq could become a full substitute for Russian volumes in the face of increasing competition for Russian oil from Indian buyers.

The premium for Russian oil fell in China amid disagreements between sellers and buyers. The premium for the ESPO grade (ESPO) for delivery to the Chinese province of Shandong for the month to October 23 fell by $10 - to $20 per barrel relative to Brent prices on the ice exchange. This was reported by Kommersant with reference to data from S&P Global. Nevertheless, Russian exporters expect to reverse the trend and raise prices for future supplies, Reuters reports. ESPO deliveries in late December and January are offered at premiums of over $25, and in some cases over $30 per barrel. The increase in expectations for sellers' prices is related to the increase in transportation prices, as well as to the predicted increase in demand due to the suspension of the American sanctions against buyers of Russian raw materials. The Chinese refineries are not yet ready to accept winter prices. This resulted in an unusually large gap between bid and offer prices. The disagreements are accompanied by a reduction in physical export volumes. According to Argos agency estimates, from October 1 to October 16, ESPO's average daily shipments fell by 4.5%. During the week the decrease accelerated to 18%. The position of Russian suppliers is also complicated by competition from alternative exporters. According to Vortexa, in October the supply of oil from the Middle East excluding Iran will increase and approach last year's level. Raw materials from Saudi Arabia and Iraq could become a full substitute for Russian volumes in the face of increasing competition for Russian oil from Indian buyers.