Posted on 05/29/2022 7:45:34 AM PDT by blam
While Europe shuns Russian oil amid sanctions and expectations of an oil embargo on Russian oil imports, India and China have stepped up purchases and are importing record volumes of Russian crude, according to data from energy analytics company Kpler cited by Bloomberg on Friday.
Russia had up to 79 million barrels of crude either traveling on tankers or held in floating storage over the past week, Kpler’s estimates have shown. That’s more than double the 27 million barrels of crude Russia had seaborne in February, just before Putin’s invasion of Ukraine.
Before the war, Russia was primarily selling its crude to Europe, but this is no longer the case after buyers, governments, international trading houses, and oil majors are all avoiding dealing with Russian oil, all the more so given the EU sanctions ban on bank transactions with the biggest Russian oil producers, including Rosneft. Trade majors have now wound down purchases of Russia’s oil.
But 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.
The significant increase in India’s purchases of Russian crude has already drawn the attention of the United States, which has reportedly sent a U.S. federal government official to discuss U.S. sanctions on Russia and try to convince India to reduce its purchases of Russian oil.
China, for its part, registered in April its first annual increase in crude oil imports since January as shipments rebounded on the back of higher arrivals from Russia, analysts say.
“Some of the interested buyers in Asia are more motivated by economics rather than taking a political stand,” Jane Xie, a senior oil analyst at Kpler in Singapore, told Bloomberg.
The fact is, Russia is getting its revenue for the Ukraine war from this.
So who the hell did pig face bidet sanction?
Sure as hell was not the Russians.
It was all a scam to get the 40 billion into the money laundromat without political objection.
In an interview yesterday, Ursula said that the EU is going to continue buying oil from Russia — this is to punish Putin who can otherwise get even better price from Asia.
There are a lot of opinions, that being one. And without a doubt with the past record of pig face bidet and his scum around him, it most likely is the best guess.
Am waiting for the trigger that sets off the Red Chinese.
“ Russia had up to 79 million barrels of crude either traveling on tankers or held in floating storage over the past week, Kpler’s estimates have shown. That’s more than double the 27 million barrels of crude Russia had seaborne in February, just before Putin’s invasion of Ukraine.”
It’s a four month trip to Shanghai (including weeks to cross load cargoes between ship types), versus a one week trip to Rotterdam.
So net export volume could still be significantly down, even while more is in transit.
Mingling floating storage volume in with the actual shipment volume, further masks how much is actually selling. All Russian storage is filling.
Depending on the price discount Russia is making, some of the Russian oil may still be going to Europe after transiting through India
“ China, for its part, registered in April its first annual increase in crude oil imports since January as shipments rebounded on the back of higher arrivals from Russia”
This is probably a combination of China feeling it is safe to buy Russian shipments (without incurring secondary sanctions), and the long lag times between order and delivery.
Russian oil is selling at a big discount to the spot market price - 20-30% in that chart, but reportedly it has even moved at a $65/barrel discount in some cases. It is hard to pass up those kinds of savings, if you are in business to make money, or have a limited budget.
China so far is not depending on Russian supply. They are currently increasing their reserves in storage at this discounted price (Chinese domestic demand is down due to COVID restrictions). They have also massively increased their domestic coal production since the war in Ukraine began, up 10%.
It looks like they are protecting against potential energy supply shocks, and snapping up some good deals. They will be able to drop Russian supplies overnight, if the sanctions regime turns against it. That probably won’t happen while Europe is still buying Russian oil.
If somebody has oil for sale, someone is going to buy it.
Biden has made Russia Great Again. The sanctions war has been a total failure as has the proxy war on the ground.
“The significant increase in India’s purchases of Russian crude has already drawn the attention of the United States, which has reportedly sent a U.S. federal government official to discuss U.S. sanctions on Russia and try to convince India to reduce its purchases of Russian oil.”
LOL. I suspect that India isn’t exactly rolling out the red carpet for the poor guy.
“In an interview yesterday, Ursula said that the EU is going to continue buying oil from Russia — this is to punish Putin who can otherwise get even better price from Asia.”
No, the above is true!!! Europe cannot agree to ban Russian oil purchases, so they’re left with having to rationalize making Russia rich off their oil.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.