Four traders reported on Tuesday that the premiums for ESPO blend crude oil shipping from Russia's Kozmino Port late in July or early August to China are unchanged compared with those for earlier in the month.

The Chinese said that the premium over ICE Brent was greater than $2 per barrel, as Chinese interest in buying oil was high, aided by healthy refinery margins. This was despite increased competition from Iranian supplies.

Vortexa reports that China's Iranian oil imports soared in June to over 1.8 million barrels a day as shippers increased delivery prior to last month's 12-day Iran War and independent refineries increased demand.

ESPO Blend Oil loadings for July are expected to be 4 million metric tonnes (about 970,000 bpd), an increase from 3.6 millions tons in June.

One of the traders stated that a decline in expected exports of Russia’s Sokol oil, which is shipped to China as well, due to refinery maintenance, could also support ESPO. The traders spoke under the condition of anonymity as they were not authorized to speak to journalists.

Another trader said that Chinese refiners will buy EPSO regardless of quality or proximity to Chinese ports.

Donald Trump, the U.S. president, said last Wednesday that the U.S. had not given up on its maximum pressure against Iran. This includes restrictions on the sale of Iranian oil. He also indicated a possible easing in enforcement for the country's rebuilding.

He said on Tuesday that China could continue to buy Iranian oil as long as Israel and Iran reached a ceasefire. (Reporting from in Moscow and Siyi Liu, in Singapore; editing done by Barbara Lewis.)

(source: Reuters)