A supertanker carrying 2.1 million barrels of Russia’s Far Eastern ESPO crude has been anchored near Taiwan for almost a week, suggesting weaker demand in Asia, according to traders.
The vessel, named Big Star, loaded ESPO crude earlier this month near Russia’s Zarubino port from three smaller ships. It was heading to Jieyang port in China’s Guangdong province, based on ship-tracking data from LSEG reported by Reuters.
However, the Big Star has remained at anchor near Taiwan instead of unloading. Traders say this is unusual because ESPO crude is a popular blend for Chinese refiners and is rarely kept in floating storage. It is also uncommon for ESPO cargoes to be transferred between ships at sea, as happened in this case.
One trade source suggested the oil was offered for sale too late and failed to attract buyers during the usual selling window, which typically opens more than a month before loading.
Some Chinese refiners are cautious about buying Russian crude due to fears of possible secondary sanctions. Still, Sinopec, Asia’s largest refiner, purchased its first ESPO cargo since February for May delivery, after skipping purchases in March and April while assessing U.S. sanctions risks.
Earlier this year, China’s state oil firms reduced or stopped buying Russian crude. However, independent refiners, who favor cheaper Russian and Iranian oil, made up for the lower state demand.
Chinese refiners are also becoming more cautious about Iranian oil trades as the U.S. steps up sanctions pressure under its ‘maximum pressure’ campaign against Iran.
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