Oil Daily | U.S. Sanctions Impact Russian, Indian, and Chinese Oil Trade Dynamics Amid Global Shifts

【Oil-Producing Countries Dynamics】

Russia is lobbying the U.S. to lift sanctions on Kremlin-linked oligarchs and energy exports, highlighting these as top priorities during talks in Saudi Arabia. Despite pressure, the U.S. maintains sanctions, targeting Russia's "shadow fleet" of tankers. Russia continues to bypass sanctions using shell companies and alliances with nations like China and Iran.

Norway's Equinor is considering selling stakes in Argentinian shale operations to YPF, its joint venture partner. Equinor seeks to divest non-core shale assets in Argentina, focusing instead on oil and gas amid changing investment strategies. Interest in Vaca Muerta, Argentina's prime shale play, has grown under a new business-friendly government.

Foreign oil companies in Kurdistan are not resuming exports despite assurances from Iraq's federal government. The halt, lasting nearly two years, stems from a dispute over export authority. Kurdistan's resumed exports could add 400,000 barrels per day to Iraq's supply. Companies demand firm agreements and payment assurances before resuming operations.

Indian imports of Russian crude have dropped to a two-year low due to U.S. sanctions, affecting trade routes and tanker availability. India, heavily reliant on oil imports, is shifting towards Iraqi crude. Russian crude remains an option if sold at a discount and transported on non-sanctioned vessels.

A reshuffle of non-sanctioned tankers is boosting China's imports of Russian and Iranian oil. The recent U.S. sanctions have doubled or tripled freight rates, attracting non-sanctioned ships to the trade. Iranian shipments to China have increased, but new sanctions could alter tanker routes and logistics.

【Company News】

Norway’s Equinor is in discussions to sell stakes in Argentinian shale operations to YPF, indicating a strategic shift away from its shale interests in Argentina. The company is adjusting its business focus, favoring oil and gas over renewables, and reevaluating its portfolio amid Argentina's changing economic policies.