Automatically translated version. May contain inaccuracies compared to the original.
🛢 Russian oil has become so expensive that even China has begun looking for replacements in Africa and Brazil, - Bloomberg
Chinese refineries are increasingly buying oil from Angola, Equatorial Guinea, and Brazil amid a sharp rise in the price of the Russian grade ESPO.
At the end of August Russian oil was selling at a premium of about $5 to Brent, and by the end of September it was already $30 per barrel. The premium has now fallen to $20, but oil from other regions still looks competitive.
Falling shipping costs have made supplies from the other side of the world profitable.
Why this matters: China has long been one of the main buyers of Russian oil, but its refineries are ready to switch to other suppliers if Russian crude loses its price advantage.
This is clearly unpleasant for the Kremlin, because it means that even the largest buyers are not willing to overpay for Russian oil out of political solidarity.
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