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U.S. Sanctions Cause Tankers Carrying Russian Oil to Idle Off China Coast.
ByAinvest
Monday, Jan 13, 2025 12:54 am ET1min read
Three tankers carrying over 2 million barrels of Russian oil are floating off China's coast after being sanctioned by the US. The ships, Huihai Pacific, Mermar, and Olia, were originally bound for Shandong province but changed course after loading ESPO crude from Russia's Pacific port of Kozmino. The move comes after the US announced its most aggressive package of measures targeting Russian oil exports since the Ukraine invasion.
The global oil market is witnessing a significant shift as three Russian oil tankers, Huihai Pacific, Mermar, and Olia, carrying over 2 million barrels of crude, have halted off China's coast following US sanctions [1]. These vessels, initially bound for Shandong province, changed course after loading ESPO crude from Russia's Pacific port of Kozmino.The US, aiming to limit Russia's access to petrodollars while maintaining supply, has imposed increasingly aggressive sanctions on Russian oil traders and shipping companies [1]. Consequently, these tankers' rerouting highlights the challenges of enforcing such measures without causing significant disruptions to the global oil market.
According to recent data, a total of 14 Russian tankers carrying 11 million barrels of oil have experienced delays or changes in their destinations over the past month [1]. While some vessels have gone out of signal, suggesting possible covert deliveries, it is relatively unusual for Russian oil tankers to behave this way since the war in Ukraine began.
The Huihai Pacific, Mermar, and Olia, which are currently anchored off China's coast, carry the Sokol grade of Russian oil. This grade is typically exported from the eastern part of the country, making their new destination an unexpected development.
The US aims to tread a delicate balance between limiting Russia's access to petrodollars and maintaining supply. However, the potential disruption to global oil flows could jeopardize this objective, highlighting the complexities of implementing effective sanctions on Russia's oil exports.
References:
[1] Su, S., & Lee, J. (2023, January 13). Tankers Carrying Russian Oil Sanctions Impact. Retrieved from https://gcaptain.com/tankers-carrying-russian-oil-sanctions-impact/
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