---
title: 'China Pays a Premium for Speed — Live with Tim Duggan of The Oil Report / 14th September 2026'
source: 'https://www.youtube.com/watch?v=aYrtN_WAWgs'
video_id: 'aYrtN_WAWgs'
date: 2026-09-15
duration_sec: 85
channel: 'MarketStack TV'
---

# China Pays a Premium for Speed — Live with Tim Duggan of The Oil Report / 14th September 2026

> Source: [China Pays a Premium for Speed — Live with Tim Duggan of The Oil Report / 14th September 2026](https://www.youtube.com/watch?v=aYrtN_WAWgs)

## Summary

The video discusses the impact of geopolitical tensions in the Middle East on global oil supply chains, specifically focusing on shipping delays and price premiums for buyers like China. It highlights the strategic importance of Russian ESPO crude as a faster alternative to Middle Eastern oil.

### Key Points

- **Shipping delays due to geopolitical risk** [00:00] — Oil ordered today will not arrive until November 7th due to potential Houthi disruptions near Bab el-Mandeb. A round trip to Asia takes 54 days one way, doubling to 108 days for the full journey.
- **China paying premium for oil** [00:29] — China is paying a $7 per barrel premium above Brent for Russian ESPO crude, which serves as a relief valve for Chinese buying. The premium may compress as Brent rises, but speed of delivery is prioritized over cost.
- **Fast delivery from Russia** [01:10] — Russian ESPO crude can be delivered to China in just five days by ship, compared to the 54-day journey from the Middle East, making it a critical alternative during disruptions.

### Conclusion

Geopolitical instability in the Middle East is forcing buyers like China to pay premiums for faster, more reliable oil supplies, with Russian ESPO crude emerging as a key alternative due to its short delivery time.

## Transcript

That oil will not land on your doorstep until the 7th of November. The 7th of November. Okay. If the Houthis do manage to go north of Viamboo, I mean, who knows when you're going to get that oil.
But the oil you order today and until Suez gets closed, and I don't think that will happen, it's going to take you about 54 days round trip or sorry 54 days one way to get your oil to asia
and then 54 days for that ship to come back okay what's happening during this time china is paying a premium for every barrel of oil that they're buying you see the espio grade out of russia
which is the major relief valve for right for chinese buying now that's trading at a seven to dollar premium above Brent. Now, I haven't checked in on it since probably Thursday last week. As Brent is moving into these new
highs, that premium will probably get compressed, obviously. But they don't really care how much it is. They care how fast they can get it. And if you recall a video I did a little back
like maybe a week or two weeks ago, they can get that oil delivered in five days on a ship, okay, from Russia.