Russian oil prices have experienced a sharp decline due to sanctions.

Russia's Oil Market Shaken by Sanctions

Recently, the prices of one of Russia's major oil types, ESPO crude oil, have recorded a dramatic decline due to the impact of Western sanctions.

ESPO Oil Prices on the Decline

According to investors, the ESPO crude oil shipped from East Asia ports was offered this week at a 50-cent discount to the ICE Brent benchmark. Last week, before the wave of sanctions, prices were trading at a premium of over 1 dollar per barrel compared to Brent.

Changes in Trade Flows

The oil market is being closely monitored for supply cuts and changes in trade flows following the United States blacklisting Russian energy giants Rosneft PJSC and Lukoil PJSC.

Chinese Refineries Canceling Purchases

ESPO crude oil is favored by both China's state-owned refineries and smaller independent refineries known as "teapots." However, following the new US sanctions, some Chinese state companies, such as Sinopec, have canceled a portion of their purchases of Russian crude oil delivered by sea.