• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 21 hours How Far Have We Really Gotten With Alternative Energy
  • 7 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
  • 8 days Bad news for e-cars keeps coming
  • 7 hours By Kellen McGovern Jones - "BlackRock Behind New TX-LA Offshore Wind Farm"
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 9 days RUSSIA - Turkey & India Stop Buying Russian Oil as USA Increases Crackdown on Sanctions
ESG Enthusiasm Wanes with U.S. Shareholders

ESG Enthusiasm Wanes with U.S. Shareholders

Despite the rising number of…

SCO Expansion Underscores Geopolitical Divide

SCO Expansion Underscores Geopolitical Divide

The Shanghai Cooperation Organization summit…

Russia Increasingly Using Own Oil Tankers To Boost Shipments To Asia

Russia’s state-owned oil producers Rosneft and Gazprom Neft have started to use tankers of local state tanker operator Sovcomflot to ship their crude to Asia, Bloomberg reported on Wednesday, quoting tanker-tracking data and sources familiar with the operations.

Tankers owned by Sovcomflot struggled to find destinations shortly after the Russian invasion of Ukraine as countries either banned imports of Russian oil or Russian vessels docking at their ports, all this while many traders and buyers refuse to deal with Russian crude. Insurers have also backed out of covering potential liabilities for tankers owned by Russia’s state tanker fleet operator.

Many Western countries and companies are not risking touching Russia-linked crude shipped by Sovcomflot, which is majority held by the Russian government. Sovcomflot, with a total fleet of 110 tankers, owns 52 Aframaxes, which makes it the world’s largest owner of those types of vessels.

The recent uptick in the use of Sovcomflot tankers, mostly for destinations in India and China, could help Russia redirect more of its crude—cheaper than Dated Brent by around $30 a barrel now—to buyers in Asia who are not afraid to purchase Russian oil, especially at these bargain prices.

For example, nine tankers owned by Sovcomflot have delivered or are about to deliver crude oil to India from western Russia since Putin launched the invasion of Ukraine, compared to not a single Sovcomflot tanker on that route last year, according to data compiled by Bloomberg.

China and India aren’t shying away from Russian crude, although some Chinese state giants haven’t ramped up imports of spot cargoes from Russia despite the steep discounts at which Russian oil is selling.

In India, cheap Russian crude oil is attracting India’s price-sensitive buyers to the point that Russia became the fourth largest oil supplier to India in April, moving up from the 10th place in March, according to shipment-tracking data compiled by Reuters.

By Charles Kennedy for Oilprice.com

More Top Reads from Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Mamdouh Salameh on May 18 2022 said:
    Russia isn’t short of means of how to ensure that its oil exports reach their destinations. Russian oil supplies reach the EU via oil pipelines while exports to China, India and other destinations are shipped on board Russian tankers.

    Russian oil exports could also reach China via oil pipelines and also by tankers bringing Russian oil from the Arctic using the Northern Sea Route (NSR).

    And yet the EU was thinking of banning shipments of Russian oil on European tankers if not for opposition from Greece. Russia doesn’t need Western tankers.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News