Chinese refiners are snapping up Russian ESPO Blend crude loading from Kozmino in September weeks earlier than usual, as Middle East supply risks escalate. Two major Chinese buyers purchased most September cargoes at discounts of $1 to $3 per barrel to ICE Brent, narrower than August's $4 discount. Robust Indian demand, including from Bharat Petroleum Corp, supports prices.

With attacks resuming in the Strait of Hormuz and Houthi threats to Red Sea shipping, Chinese processors view ESPO as a safer, cheaper alternative. "Given the uncertainty in the Middle East, ESPO is a safer bet," a Chinese trader said. Brent has surged to nearly $100 a barrel.

Meanwhile, Shandong teapots are negotiating fresh Iranian oil cargoes. Iranian Pars crude was offered at about $8/bbl discount to ICE Brent, while Iran Light discounts widened to $3-4/bbl. Teapots previously bought 20 million barrels of Middle Eastern crude for July-August loading and are now reselling some at premiums of $6-9/bbl to Dubai benchmark.