Abundant, cheap Iranian oil supply to cap Russian prices in China - sources
Rising prices of a popular Russian crude sold to China are expected to peak soon as more independent refiners are likely to switch to cheaper oil from Iran, which has increased its exports to 4-1/2 year highs in August. OPEC+ supply cuts and strong demand from large Chinese refiners for Russian oil have pushed prices for the ESPO Blend grade to the narrowest discounts since the Ukraine war. However, the availability of cheaper Iranian oil may cap the price hike for ESPO crude. China's large private refiners have been purchasing more ESPO crude, leaving smaller refiners to seek cheaper alternatives like Iranian oil.