Russian Far East Crude Tops $120 Per Barrel as Middle East Supply Shocks Drive Chinese Demand
The buying spree pushed the ESPO grade’s price premium over benchmark ICE Brent to record levels of $20 to $30 per barrel.
Crude oil prices from Russia's Far East reached a record high of $120 per barrel this week, driven by supply shocks in the Middle East, according to Reuters. Chinese refiners made early purchases of the ESPO blend, typically bought one to two months ahead due to the short shipping distance. The price of ESPO, a low-sulfur, light Siberian crude, surged by $20 to $30 per barrel, surpassing the benchmark ICE Brent by a significant margin.
Iran and its proxies retaliated against U.S. strikes and economic warfare, causing Saudi Arabia to shut down a critical oil pipeline after militants launched drones at it in Iraq. This led to a similar surge in Russia's flagship Urals blend in March and April 2026. Global buyers sought alternative oil supplies during the Strait of Hormuz closure, pushing Urals prices above $110 per barrel.
However, prices dropped in the summer as workaround shipping routes appeared and Chinese refiners reduced domestic stockpiles. The current price surge in ESPO is attributed to the damaged Saudi infrastructure and depleted global inventories, causing Russia's Urals crude delivered to India and China to reach $110 to $120 per barrel.
Russia's weekly seaborne oil export revenues hit $2.42 billion, their highest level since late May, according to Bloomberg.
Written by urgent.news from The Moscow Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
