The Biden administration's latest sanctions on Russian oil trade have forced a shift in shipping routes for Aframax tankers, now redirected from western Russian ports to the Far East-China route to handle ESPO crude exports.
Aframax oil tankers that previously serviced crude oil exports from Russia's western ports are being redirected to the Russian Far East -China route to handle exports of Russia's ESPO crude, a popular choice among Chinese refiners, according to Bloomberg reports, citing shipbroker and ship-tracking data.
The Biden Administration's final sanctions on Russian oil trade were the most stringent yet, targeting dozens of vessels that Russia utilized to ship the ESPO crude blend from its Far East port of Kozmino to China's independent refiners. Many of these vessels, including specialized tankers and shuttle tankers, transported Russia's oil from the Arctic and Far East Pacific fields and production clusters to Asia, and have now been sanctioned. This move has potentially put around 1.5 million barrels per day (bpd) of Russia's crude flows from its Pacific and Arctic ports at risk, based on a Bloomberg analysis of the tankers now designated by the U.S. According to Bloomberg's estimates, approximately 70% of the oil tankers Russia used to ship crude from Kozmino have been subject to sanctions. This development has likely prompted Moscow and its trading partners to withdraw tankers servicing the western Russian ports of Primorsk, Ust-Luga, and Novorossiysk and redeploy them to the Far East-China routes. Freight rates for shipping ESPO crude on the Kozmino-East China route have tripled since the U.S. sanctions were announced on January 10. At least two oil tankers that previously transported Russian crude from the western ports are now operating on the Kozmino-China route, according to vessel-tracking data compiled by Bloomberg. Both tankers are owned by companies based in Hong Kong, but the ultimate owners' nationalities remain unknown. Following these latest U.S. sanctions, supertanker rates doubled within a week and contributed to an increase in the cost of hiring Aframaxes and Suezmaxes. Fleet capacity to handle Russian exports is anticipated to tighten significantly, according to Mary Melton, a freight analyst at Vortexa.The most probable scenario for Russian crude exports moving forward is that they will likely encounter serious logistical challenges due to the scarcity of available tonnage, according to Vortexa
RUSSIA OIL SANCTIONS ESPO CRUDE TANKERS SHIPPING FAR EAST CHINA LOGISTICS
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
First Russian Crude Tanker Discharged Amidst New US SanctionsThe first tanker carrying Russian crude oil discharged at an eastern Chinese port operated by Shandong Port Group, following new sanctions imposed by the Biden administration on Russian energy. The sanctions, which include a grace period, target 180 vessels, senior Russian oil executives, traders, and two major oil companies, Surgutneftgas and Gazprom Neft. India has pledged to comply with the sanctions and turn away sanctioned tankers. Experts predict the sanctions will significantly disrupt Russian oil exports to China and India, the largest buyers of Russian crude, potentially impacting the global oil market.
Read more »
US Sanctions on Russian Oil Tankers Threaten India's SupplyIndian refiners are bracing for a major disruption to their supply of cheaper Russian crude oil as the US prepares to impose sanctions on tankers transporting Russian oil. The new sanctions package, expected to target over 180 tankers and Russia-based maritime insurance providers, aims to curb Russia's oil revenues and support Ukraine. While India remains the largest importer of Russian crude, it has recently diversified its oil sources by increasing purchases from the Middle East.
Read more »
Campaigners say changes to East Coast timetable bad for North EastLNER says the timetable will mean quicker journeys, but opponents say smaller stations will miss out.
Read more »
India to Comply with US Sanctions on Russian Oil, Diversifying Energy SourcesOil prices remain elevated following the Biden administration's announcement of stringent sanctions against Russian oil. India, a major importer of Russian crude, has pledged to adhere to these sanctions, prompting a reassessment of its energy security strategies. This move could significantly disrupt Russian oil exports, particularly to India and China, the top two buyers of Russian crude.
Read more »
BPCL Turns to Middle East for Crude as Russian Supply FaltersIndia's second-largest fuel retailer, BPCL, is sourcing more crude oil from the Middle East to compensate for a decline in Russian supplies. While BPCL previously relied heavily on cheap Russian crude, the recent decrease in shipments has prompted them to seek alternative sources, primarily Oman. If the reduced Russian supply persists, BPCL plans to explore options such as purchasing U.S. West Texas Intermediate (WTI) crude and further increasing Middle Eastern imports.
Read more »
Oil Prices End 2024 Flat Despite China Optimism and Middle East RisksOil prices ended the last week of 2024 with minimal changes despite anticipation of economic reports from China and the United States. Both Brent crude and West Texas Intermediate remained close to Friday's close, indicating a year-end performance largely similar to their beginning. The week saw gains fueled by optimism surrounding China's oil demand prospects, despite bearish forecasts from state-owned companies. Global oil consumption reached record highs in 2024, driven by continued demand growth despite China's underperformance. However, Rapidan Energy warned of increased supply risks in the Middle East due to escalating tensions with the Houthis, posing a potential threat to oil production.
Read more »