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Kazakhstan CPC Blend oil heads to Asia as European demand eases, sources say

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Published18 JUL 25 - 10:51 Reading time  minutes

June Goh, a senior analyst at Sparta Commodities, said an uptick in freight rates for Very Large Crude Carriers on the Middle East to China route has also increased costs for Gulf crudes versus arbitrage supplies from Kazakhstan, the U.S. and Brazil.

Reuters, July 18, 2025 – Asian refiners are increasing purchases of Kazakhstan’s CPC Blend crude for August loading, responding to reduced European demand which has widened CPC Blend discounts by approximately $1 per barrel compared to the previous month. This pricing disparity presents arbitrage opportunities, supported by a narrower Brent-Dubai spread, making Atlantic Basin grades more cost-effective for Asian markets. Major Asian refiners including Unipec, SK Energy, GS Energy, and Reliance Industries have each secured substantial volumes, with CPC Blend prices positioned competitively against Murban crude, impacted by supply diversions to domestic refineries in Abu Dhabi.

Topics Crude
Author

June Goh

Senior Oil Market Analyst

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