Russian mixed crude oil ESPO
ESPO is a mixed crude oil named after the abbreviation of the eastern Siberian Pacific Ocean pipeline, which is produced from different oil fields in Russia.
Through the oil transportation to China, Russia not only won the market, but also obtained the opportunity to promote ESPO crude oil to become the benchmark crude oil in the Asia Pacific region. Some experts believe that Russia is the only oil source of the Far East oil pipeline. As an exporter, it is entirely possible for it to take the lead in crude oil pricing in the Asia Pacific market in the future. Like Brent crude oil in the North Sea, WTI crude oil in West Texas and Dubai crude oil in the United Arab Emirates, ESPO crude oil is expected to become the benchmark crude oil in the Asia Pacific region in the future.
ESPO crude oil is a mixture of medium crude oil and heavy and high sulfur crude oil. Different from the usual heavy Russian oil with high sulfur content, ESPO crude oil has a sulfur content of about 0.6%, which is closer to the low sulfur crude oil, and the API gravity point is closer to the typical high sulfur crude oil. It is a special variety with better quality than the traditional Russian crude oil. It can be used as a substitute for various medium to heavy crude oils in the Asia Pacific region, from West Africa The crude oil of similar quality in the Middle East and Latin America even replaces the crude oil of some declining oil fields in North America, such as Alaska North Slope oil.
Depending on the convenient location, ESPO crude oil can be delivered to Asian customers in about 4 days, while oil tankers from the Persian Gulf take three weeks. In addition to greatly shortening the transportation time, it also makes the oil transportation cost lower and the oil price more competitive. In addition, tariff subsidies also make this new type of crude oil more competitive in price.