India has increased its purchases of Russia’s Far East ESPO blend oil for arrival in June and July, as China, a major buyer of this grade, purchased less. This was confirmed by two sources who are involved in the Russian crude oil trade and LSEG data.

India's imports from Russia of ESPO Blend reached 500,000 metric tonnes (123,000 barrels per days) in June, and they are expected to exceed 700,000 tones this month. This is according to sources and data. LSEG data show that this is a substantial increase from the 100,000 to 200,000 tons India purchased monthly of the grade since September 2023.

One source said that "Indian refiners increased ESPO blend oil purchases last month due to ample supplies. Weaker Chinese demand also allowed them the opportunity to buy cargoes for a lower cost."

Reliance Industries, Indian Oil and other Indian refiners were the main buyers of ESPO blend oil in India last month, according to sources citing data.

India is the biggest buyer of Urals oil shipped by sea, and China is the top buyer of ESPO Blend because it is suitable for China's "teapots" of smaller refineries.

China's demand fell for ESPO blend for May and early June loadings due to lower refining margins. Prices have since improved for July & August loadings on the back of stockpiling.