SINGAPORE/MOSCOW: Surgutneftegaz sold two March-loading cargoes of Russian ESPO crude, a China-focused grade, at spot premiums in the range of $1.50-above $1.60 a barrel to Dubai quotes via its first spot tender this month, the lowest since October, trade sources said on Monday.

The cargoes, loading over Feb. 28-Mar. 5 and Mar. 2-8, were sold to trading house Mercuria and Glencore, the sources said.

Chinese teapot appetite for spot crude is weak this month as a surge in new COVID-19 cases has triggered new lockdowns in north and northeast China, while high oil prices squeeze margins.

Last month, ESPO crude was sold at spot premiums of around $2.3-$3.3 a barrel to Dubai quotes via tenders.