Russian Far East Crude Tops $120 Per Barrel as Middle East Supply Shocks Drive Chinese Demand

Sep. 18, 2026 A production facility owned by the Transneft oil pipeline operator. REUTERS / Maxim Shemetov Prices for Russia’s ESPO blend of crude oil bound for China surged past $120 per barrel this week, Reuters reported Friday, citing trading sources and market data. Chinese state-owned refiners rushed to lock in November and December ESPO cargoes early, although they typically purchase the grade one or two months in advance due to the short shipping distance. The buying spree pushed the ESPO grade’s price premium over benchmark ICE Brent to record levels of $20 to $30 per barrel. ESPO is a low-sulfur, light Siberian crude exported primarily via the Kozmino port in Russia's Far East. China primarily imports the unique blend, as well as Arctic and Sakhalin grades. The surge in premium costs comes as Iran and its proxies continue to retaliate against U.S. strikes and economic warfare. Saudi Arabia shut down a critical oil pipeline last week after it said militants in Iraq launched drones at the facility, which was being used as an export route to bypass the effective closure of the Strait of Hormuz. The rising cost of ESPO mirrors a similar surge seen with Russia’s flagship Urals blend in March and April 2026 after the United States and Israel first launched attacks against Iran. During the initial closure of the Strait of Hormuz this spring, global buyers scrambled for alternative oil supplies, sending Urals prices soaring above $110 per barrel. Prices cooled over the summer as workaround shipping routes were established and Chinese refiners drew down domestic stockpiles. The spring surge came as the Trump administration sought to ease global energy markets by issuing multiple rounds of a sanctions waiver on purchases of Russian seaborne crude. But with Saudi infrastructure damaged and global inventories depleted, physical crude premiums have once again surged. Russia’s Urals crude delivered to India and China reached $110 to $120 per barrel last week, the newspaper Kommersant reported Wednesday, citing the energy agency Argus. Meanwhile, Russia’s weekly seaborne oil export revenues hit $2.42 billion, their highest level since late May, Bloomberg reported Wednesday, citing tanker tracking data. Read more about: Oil , China Sign up for our free weekly newsletter Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview Subscribers agree to the Privacy Policy We sent a confirmation to your email. Please confirm your subscription. A Message from The Moscow Times: Dear readers, We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent." These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia. We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help. Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact. By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us. Once Monthly Annual Continue Not ready to support today? Remind me later. × Remind me next month Remind me Thank you! Your reminder is set. We will send you one reminder email a month from now. For details on the personal data we collect and how it is used, please see our Privacy Policy. Read more Russian Oil Revenues Slide to 2.5-Year Low as Sanctions Drive Asian Buyers Away The International Energy Agency warned that sanctions on Rosneft and Lukoil “may have the most far-reaching impact yet on global oil markets.” 2 Min read Russia Says Redirected Most Oil Exports to China, India Western sanctions including a European Union embargo on its seaborne oil deliveries have forced Russia to direct its exports to other markets. 2 Min read Russian Oil Exports to China Hit New All-Time Record Russia exported 10.5 million tons of crude oil to China in June, breaking the previous record of 9.71 million tons set in May. 2 Min read China’s Russian Oil Imports Highest Since Ukraine Invasion Customs data shows that imports of Russian crude by China have almost doubled since Moscow invaded its neighbor last year. 2 Min read