Post by account_disabled on Mar 9, 2024 7:04:05 GMT
In January, Indian imports of Russian crude oil hit a record high. Specifically, imports rose 9.2%, with a daily average of 1.4 million barrels. This month, China's oil imports from Russia are also expected to hit a record 1.66 million barrels a day.
Together, India and China absorb more than half of Russia's total daily crude oil exports, which before the war in Ukraine amounted to around 5 million barrels a day, much of it destined for Europe. Now, Russia is directing its exports to new markets.
According to data from the Energy Ecuador Mobile Number List Intelligence agency, this month at least 20 companies, but probably many more, are shipping Russian oil around the world, replacing all the big market players that withdrew from the country after the EU and G7 began to sanction the country for its invasion of Ukraine.
Companies like Vitol, Trafigura, BP, Shell or Equinor abandoned any business they had in Russia, leaving an empty space that has been immediately filled, mostly through start-ups outside Europe and that do not operate in dollars or euros.
The transactions these companies are making in Russian oil and fuels are being financed by banks in the United Arab Emirates and Turkey, with European entities out of the picture due to sanctions and the recent G7 price cap that prohibits the companies European companies get involved in the Russian oil trade unless the price is at most $60 per barrel. With the Europeans and Americans out, others are making money.
Most of the new traders involved in Russian crude and fuels around the world are based in Dubai, Energy Intelligence notes, but Hong Kong is another hub for these operations.
Much of Russia's oil and fuels in this new trading environment are being shipped by a tanker fleet worth about $2.2 billion and made up of about 600 vessels.
Earlier this month, the International Energy Agency (IEA) reported that both Russia's oil production and exports have proven surprisingly resilient to Western sanctions. Russian oil production is estimated to have only fallen by 160,000 barrels a day from pre-war levels and exports fell by 400,000 barrels a day, a decline partially offset by increased exports to China, India and Turkey.
However, thanks to sanctions, Russia is making less money on its oil since it has to sell it at significant discounts on its market price.
According to IEA data, in January, oil export revenues from Russia were about $13 billion, 36% less than a year ago and a few days before Russia cut its daily production, sea exports They reached an increase of 26% last week compared to last month, representing 3.6 million barrels, of which 3.19 million are headed to China and India.
Together, India and China absorb more than half of Russia's total daily crude oil exports, which before the war in Ukraine amounted to around 5 million barrels a day, much of it destined for Europe. Now, Russia is directing its exports to new markets.
According to data from the Energy Ecuador Mobile Number List Intelligence agency, this month at least 20 companies, but probably many more, are shipping Russian oil around the world, replacing all the big market players that withdrew from the country after the EU and G7 began to sanction the country for its invasion of Ukraine.
Companies like Vitol, Trafigura, BP, Shell or Equinor abandoned any business they had in Russia, leaving an empty space that has been immediately filled, mostly through start-ups outside Europe and that do not operate in dollars or euros.
The transactions these companies are making in Russian oil and fuels are being financed by banks in the United Arab Emirates and Turkey, with European entities out of the picture due to sanctions and the recent G7 price cap that prohibits the companies European companies get involved in the Russian oil trade unless the price is at most $60 per barrel. With the Europeans and Americans out, others are making money.
Most of the new traders involved in Russian crude and fuels around the world are based in Dubai, Energy Intelligence notes, but Hong Kong is another hub for these operations.
Much of Russia's oil and fuels in this new trading environment are being shipped by a tanker fleet worth about $2.2 billion and made up of about 600 vessels.
Earlier this month, the International Energy Agency (IEA) reported that both Russia's oil production and exports have proven surprisingly resilient to Western sanctions. Russian oil production is estimated to have only fallen by 160,000 barrels a day from pre-war levels and exports fell by 400,000 barrels a day, a decline partially offset by increased exports to China, India and Turkey.
However, thanks to sanctions, Russia is making less money on its oil since it has to sell it at significant discounts on its market price.
According to IEA data, in January, oil export revenues from Russia were about $13 billion, 36% less than a year ago and a few days before Russia cut its daily production, sea exports They reached an increase of 26% last week compared to last month, representing 3.6 million barrels, of which 3.19 million are headed to China and India.