Russian crude exports have climbed to their strongest levels in more than two years. However, port congestion across Asia has slowed deliveries. As a result, a growing volume of oil now sits offshore on tankers waiting to unload.
Over the past four months, the amount of Russian crude held at sea has increased sharply. By late December, roughly 20 tankers loaded with Russian oil were anchored near ports in India and China. Several of these vessels faced extended waiting times due to berthing delays and clearance issues.
Exports Rise, But Delivery Bottlenecks Persist
Crude shipment volumes rebounded in December after a weaker November. Higher loadings lifted average export flows to levels last seen in mid-2023. Even so, logistical constraints prevented smooth discharge, pushing offshore inventories higher.
At the same time, falling oil prices continued to pressure export values. Russian grades recorded steady price declines through December, with shipment revenues nearing multi-year lows despite higher volumes.
Production and Refining Factors Add Supply
Lower refinery utilization also added to export availability. Refining activity remained below normal seasonal levels, leaving more crude available for shipment. This surplus contributed further to the buildup of oil on tankers offshore.
Meanwhile, exporters relied more heavily on Baltic Sea loadings, which accounted for a large share of the recent increase in shipments. Additional barrels also entered the market from neighboring supply streams facing infrastructure disruptions.
Sanctions Scrutiny Shapes Shipping Behavior
Stricter monitoring of sanctioned oil movements has influenced tanker operations. Some vessels delayed declaring final destinations, while others appeared to linger in holding areas before proceeding to discharge ports.
In several cases, tankers temporarily stopped transmitting location data near known transshipment zones. This pattern suggests that some operators adopted risk-avoidance measures amid heightened enforcement attention.
Asian Demand Still Dominates Flows
Asia remained the primary destination for Russian crude. Although direct shipments to individual countries fluctuated week to week, overall flows toward the region stayed elevated. Cargoes without declared final ports made up a growing share of the volumes at sea.
By late December, the total number of loaded tankers and barrels in transit exceeded levels seen earlier in the quarter. Daily shipment rates approached four million barrels per day, reversing much of the prior month’s slowdown.
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Source: FullAvanteNews
