China and India have stopped trading in Russian oil due to rising tanker tariffs caused by US sanctions. About this informs Reuters.
Traders and shipping companies note that the trade of Russian oil in Asia, which was planned to be shipped in March, has effectively stopped. In China, there has been a significant price gap between sellers and buyers due to higher freight rates for tankers that are not subject to US sanctions.
Prices for Russian ESPO Blend oil exported from the port of Kozmino rose to $3-5 per barrel above the price of ICE Brent for delivery to China. This comes after a multi-million dollar sharp increase in freight rates for Aframax tankers.
Before the sanctions, demand for oil and rising prices for alternative grades, such as from Iran, pushed premiums on ESPO Blend to nearly $2 a barrel, the highest level since the start of Russia’s full-scale war against Ukraine. Previously, premiums for this oil fell to 6 dollars due to discounts.
The chief financial officer of Bharat Petroleum Corp Ltd said that the company did not receive the usual offers for supply in March. They predict a reduction in the volume of supplies compared to previous months. Russia accounted for 36% of India’s crude oil imports last year, while China provided nearly a fifth of Russian exports.
