Russian Oil Tankers Queue Near China as India Cuts Back Purchases

A growing fleet of tankers carrying Russia’s flagship Urals crude oil has accumulated off China’s eastern coast, following a sharp reduction in purchases by India—the grade’s largest buyer—due to Western sanctions.

RoydadNaft –  A growing fleet of tankers carrying Russia’s flagship Urals crude oil has accumulated off China’s eastern coast, following a sharp reduction in purchases by India—the grade’s largest buyer—due to Western sanctions.

As of Wednesday, at least five vessels loaded with approximately 3.4 million barrels of oil were idling in the Yellow Sea, according to data from Kpler. This volume is double that of the previous week and represents the highest level for Urals crude in the region in more than five years. The location is near Shandong province, a major hub for China’s independent oil refiners, known as teapots.

This buildup of Urals cargoes off China has drawn widespread attention from global oil traders, as it represents an unusual development. Chinese refiners typically do not favor Urals crude loaded from Russia’s distant western ports, preferring instead supplies from eastern Russian terminals due to shorter shipping distances and higher diesel yields.

Meanwhile, India’s imports of Russian oil are projected to fall to around 800,000 barrels per day this month, according to local officials—a significant decline from the peak of 2 million barrels per day reached in June.

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