Russia’s ESPO Blend oil exports from the far eastern port of Kozmino were revised up by 0.3 million metric tons to 4.2 million tons (1 million barrels per day) in July, two industry sources said on Friday.

Moscow has increased its oil exports eastwards, a cheaper and shorter way to Asian markets, which has become the main destination for its oil after Western sanctions cut it off from its traditional European market.

The increase in supplies via the pipelines to the east became possible due to oil pipeline monopoly Transneft’s raising the eastward transportation capacity.

Transneft’s chief Nikolay Tokarev said earlier this year the company planned to increase oil transportation to the east.

He has also said that oil exports via Kozmino are set reach 46 million tons in 2024 (0.93 million bpd), up from 45 million tons in 2023, adding that loadings may even rise above 50 million tons (1.014 million bpd).

This year’s monthly oil exports of ESPO Blend have averaged below 1 million bpd so far.

ESPO Blend exports from Kozmino were revised up to 4.2 million tons in July from about 3.9 million tons planned previously as Rosneft ROSN.MM applied for additional export cargoes, one of the sources said.

Transneft and Rosneft did not reply to requests for comment.

Earlier this year, Transneft announced plans to add extra storage tanks on ESPO pipeline for 200,000 cubic metres in 2024. The company has also said it upgraded pumping equipment along the East Siberia – Pacific Ocean pipeline and used additives to increase oil flow.

Spot discounts for ESPO Blend have been narrowing this month due to firm demand from Chinese refiners despite high availability of the grade. India, one of the major buyers of Russian oil, has also cranked up purchases of ESPO Blend oil.
Source: Reuters (Reporting by Reuters; editing by David Evans)