Chinese refiners try out cheap, exotic oil from Europe

Bargain-hunting Chinese buyers have snapped up very cheap and sometimes obscure crude oil grades, mostly from Europe, where the impact of lockdowns to halt the new coronavirus has devastated demand.
Chinese purchases of Brent-linked grades jumped in April, including North Sea, Russian and Caspian oil, eight traders said.
"If there is a buyer in Europe now, it is China," a Mediterranean oil trader said on condition of anonymity.
However, the buying of physical cargoes has eased as expectations of a deal to tackle a global oversupply at talks between OPEC and its allies later this week changed the structure of the oil futures curve.
The Brent discount to Dubai narrowed to $1.35 per barrel from nearly $5 per barrel a week ago, making arbitrage shipments to Asia less attractive.
North Sea grades purchased included Balder, Flotta and Chestnut crude, while Guyana's Liza crude was sold into China for the first time, the trade sources told Reuters. Balder and Chestnut are not commonly seen in the spot market.