CHINA's crude buyers have paused purchases of some Russian oil as they wait for details of a US-led cap to see if it presents a better price, reports Bloomberg.
Several cargoes of Russian ESPO crude for December-loading remain unsold and there's hesitation among sellers and Chinese buyers to close deals before more clarity on the exact price cap level is known, according to traders with knowledge of the matter.
The price limit is set to be implemented alongside European Union sanctions on Russian crude on December 5, with those adhering to the measure gaining access to insurance, banking and shipping services from the bloc.
The cap is designed to keep crude flowing from the OPEC+ producer to prevent a global supply shock but crimp the Kremlin's revenues as it wages war in Ukraine.
However, Russia has reiterated that it won't sell to nations that implement the cap. Instead, Moscow will redirect supply to 'market-oriented partners' or reduce production, according to Russian Deputy Prime Minister Alexander Novak.
ESPO is popular with China's independent refiners due to the high diesel yield and short shipping distance. Traders said many market participants appear open to referencing the price cap - even if they don't officially support it - provided the level isn't too dislocated from current prices.
SeaNews Turkey
Several cargoes of Russian ESPO crude for December-loading remain unsold and there's hesitation among sellers and Chinese buyers to close deals before more clarity on the exact price cap level is known, according to traders with knowledge of the matter.
The price limit is set to be implemented alongside European Union sanctions on Russian crude on December 5, with those adhering to the measure gaining access to insurance, banking and shipping services from the bloc.
The cap is designed to keep crude flowing from the OPEC+ producer to prevent a global supply shock but crimp the Kremlin's revenues as it wages war in Ukraine.
However, Russia has reiterated that it won't sell to nations that implement the cap. Instead, Moscow will redirect supply to 'market-oriented partners' or reduce production, according to Russian Deputy Prime Minister Alexander Novak.
ESPO is popular with China's independent refiners due to the high diesel yield and short shipping distance. Traders said many market participants appear open to referencing the price cap - even if they don't officially support it - provided the level isn't too dislocated from current prices.
SeaNews Turkey
