Premiums on Russian oil bound for China rise to record levels
Premiums on Russian ESPO crude shipped to China rose to record levels, supported by strong demand from Chinese refiners and high freight costs, while Middle East supplies were disrupted by geopolitical tensions. Cargoes for delivery in late December 2026 and January 2027 carry premiums of more than $25 a barrel to Brent, and two offers to China exceeded $30 a barrel, according to traders cited by Reuters. Freight for an Aframax cargo from the Russian Pacific port of Kozmino to China briefly reached $10 million per voyage in October 2026 before falling to about $2 million.
Why it matters: The record premiums link Asian refinery procurement and energy security to disruptions in Middle East supply and to the shift of Russian crude trade flows toward Asia.