Freight rates for ESPO Blend crude shipped from the Russian port of Kozmino to China eased further in April to the lowest since mid-January on higher availability of tankers, three traders said.
Lower rates mean Russian exporters will spend less on freight and earn more for their oil.
Freight rates on the route have eased to levels of around $2 million-3 million for April-loading cargoes from $4 million-5 million for February and March volumes as more non-sanctioned tankers have joined the ESPO market, they added.
Russia’s ESPO Blend oil price fell below the $60 per barrel Western price cap level for the first time ever early in April as the international Brent benchmark plummeted to the lowest levels in years, Reuters calculations based on three trading sources showed.
The price has been changing since then, but remains around the $60 per barrel cap, the traders said.
“ESPO Blend hovers around $60 (per barrel). Higher oil prices and lower freight rates may bring its price back above the cap again”, complicating the process of finding a vessel, one of the traders said.
The cost of transporting ESPO Blend to China jumped to $6 million-$7.5 million after U.S. sanctions were placed on vessels involved in Russian oil shipments on January 10,…