China’s cooling oil demand has Asian physical prices sliding

THE price of physical oil barrels traded in Asia has slipped after Chinese demand cooled following a record purchasing spree.

Spot premiums of Russian ESPO crude -- favored by Chinese refiners due to the shorter export time -- have more than halved since last month, while medium-sour Upper Zakum oil from the U.A.E. recently sold at a steep discount. Inter-month Dubai swaps flipped back into contango on Friday, according to data compiled by Bloomberg, signaling concerns about potential over-supply.