The ARGUS crude delivered to Shandong price assessments
Argus delivered ex-ship (des) Shandong assessments are the first transaction-based prices for China. These five crude grades are the most traded on Shandong’s spot market, and allows traders, producers and refiners to shift from risky fixed-price deals to floating-price indexation.
Des Shandong trade flows
Des Shandong Tupi
Two-thirds of Brazilian crude exports are shipped to China but, since mid-2022, state-owned refiners have replaced independent firms as the major recipients. The Argus des Shandong Tupi assessment provides the first-ever market assessment for Brazil’s largest export stream that does not price at the point of loading. The des Tupi assessment gives producers, traders and refiners an option to shift to floating-price indexation from fixed-price trades in a volatile market environment. Argus’ highly liquid des Tupi assessment also provides market participants a much-needed reference price for the settlement of swaps contracts.
Des Shandong ESPO Blend
The Argus des Shandong ESPO Blend assessment complements Argus’ successful fob Kozmino assessment for Russia’s core export grade to Asia-Pacific, giving market participants price visibility down the supply chain. China remains the main market for ESPO Blend, and the des Shandong market trades ESPO Blend throughout the month.
Des Shandong Djeno
The Argus des Shandong Djeno assessment provides buyers and sellers with a reference price for sales of all west African grades to northeast Asia, simplifying the process of agreeing term contracts for buyers and sellers. Most west African crude exports head to Asia-Pacific, where Congolese Djeno has emerged as the most-liquid traded grade in a fragmented delivered market.
Des Shandong Johan Sverdrup
Shipments of Johan Sverdrup to China have slowed since the start of the Russia-Ukraine conflict — Russian Urals have diverted east, to Asia-Pacific, while European refiners now pay a premium to preserve access to the regional grade. Periodically, Johan Sverdrup still ships to China when European demand falters. With a specification of API°28 and sulphur 0.8pc, Johan Sverdrup competes on quality with Brazilian and west African grades in China. Like the rest of the des Shandong price assessments, des Shandong Johan Sverdrup is assessed as an average of deals done over the day, but with an assessment window of 60-100 days forward.
Des Shandong Oman
Argus’ des Shandong Oman assessment gives a vital indication of the value of medium sour crude traded on a delivered-to-China basis but has tended — since 2022 — to represent the price paid for grades such as Iranian Light or Russian Urals — whichever is cheaper — rather than Oman Export Blend.
Where to find these assessments
These four des Shandong price assessments are published daily in our Argus Crude service, where you can also find news and analysis for more than 80 different internationally traded crude streams.
Argus China Petroleum
The Argus China Petroleum service offers in-depth daily coverage of oil markets in China and includes more than 30 sets of key data-tracking prices and supply and demand fundamentals, as well as a monthly report analysing market developments.