Reported 5 months ago
China's independent oil processors are expected to purchase the lowest volume of Russian ESPO crude in over three years, with about 12 million barrels bought for June arrival so far in May, potentially the lowest since May 2021. The decrease is attributed to shrinking refining profits and the availability of cheaper oil grades from Iran and Venezuela. Chinese teapot refiners in Shandong province are facing lower margins, potentially leading to operational cuts and a preference for cheaper crude options. Despite ESPO's higher diesel yield, teapots are considering more cost-effective alternatives, leading to a slowdown in ESPO purchases.
Source: YAHOO