1. What It Is:
ESPO crude is a medium-light, sweet crude oil produced in Eastern Siberia, Russia, and exported via the ESPO pipeline to Asian markets, especially China, Japan, and South Korea.
2. Key Characteristics:
-API Gravity: ~35.6° (medium-light)
- Sulfur Content: ~0.48% (sweet)
- Low metal and salt content
- High yield of middle distillates like diesel and jet fuel
- Considered cleaner than Urals crude
3. Export Infrastructure:
- Transported through the ESPO pipeline from Siberia to the port of Kozmino (Russia’s Far East)
- Also sent via rail to China
- Key export route to the Asia-Pacific region
4. Market Role:
- Benchmarked separately from Urals crude due to better quality
- Actively traded in the Asian spot market
- Priced competitively against Middle Eastern and U.S. crudes in Asia
- Delivered mostly under FOB Kozmino terms
5. Applications:
- Refining into gasoline, diesel, jet fuel, and other products
- Preferred by Asian refineries due to low sulfur and good yields
6. Strategic Importance:
- Supports Russia’s energy exports to Asia
- Offers an alternative to Middle Eastern crude for Asian buyers
- Plays a growing role in regional energy security and pricing dynamics
