AsianOil: China eyes cheaper Iranian crude as Russian discounts dry up

With rising prices seen on Russian crude imports of late, speculation is rife in East Asia that the authorities in Beijing will soon give the nod to increased imports of Iranian crude in the coming months.

Much of this speculation has come about following the much-publicised OPEC+ output cuts, which in turn increased demand on Russian exporters.

Chinese refiners have thus seen prices on Russia’s ESPO Blend transported by way of the East Siberia Pacific Ocean (ESPO) pipeline rise as a result. In a knock-on effect this has served to reduce once lauded discounts to a minimum.

Key in the final decision being made, however, will be the accuracy of claims that Russian crude prices are about to peak.

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