Record volumes of Russian oil heading to Asia – Bloomberg

Supplies to the EU have plummeted ahead of the looming price caps

Asian countries now account for two thirds of Russia’s total seaborne oil exports, while supplies to the EU continue to decline, Bloomberg reported on Monday.

Sea deliveries to Asia reportedly accounted for less than two fifths of Russian seaborne crude sales before the EU, the US and their allies introduced sanctions over Moscow’s military operation in Ukraine.

China and India are reportedly forming the backbone of the latest surge in Russian oil trade, while minor volumes are also being shipped to Sri Lanka and the UAE. 

The overall volume of crude heading to China, India and Turkey, along with cargo on vessels that are yet to show a final destination, reportedly soared to a record 2.39 million barrels per day in the 28 days to November 11.

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Moscow’s unprecedented switch from West to East comes three weeks before EU sanctions, supported by the G7 nations and Australia, kick in on December 5. The punitive measures will oblige Western businesses to stop providing insurance and other services to tankers loaded with Russian crude, unless the cargo is purchased below a yet-to-be-agreed price cap.

Tankers hauling Russian crude from the country’s Pacific ports take only a few days to deliver the cargo to Chinese import terminals, and the voyage from the Black Sea to Turkey is also similarly short. However, shipments to India from any of Russia’s export terminals commonly take several weeks, putting them at greater risk of violating Western sanctions before they reach their destination.

Russia’s seaborne crude exports to European countries fell to a five-week low of 700,000 barrels per day in the four weeks to November 11.

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