- Moscow Struggles to Sell Crude as U.S. and EU Target Rosneft and Lukoil.
- Russian Oil Trades at Deep Discount as Asian Buyers Cut Purchases.
- Unclear Ownership Adds to Mystery Around Stalled Tankers.
Two tankers loaded with around 1.5 million barrels of Russian Urals crude have dropped anchor on either side of the Suez Canal. Tracking data from LSEG and OilX reveals that both vessels have been stationary for over a week, highlighting the growing difficulties Moscow is facing in selling its oil after the recent tightening of Western sanctions, reports Reuters.
Sanctions Target Russia’s Major Oil Players
For the first time, the United States and the European Union have imposed stricter sanctions on Russia’s two biggest oil companies, Rosneft and Lukoil. Together, these companies account for about 5% of the world’s oil supply. The goal of these measures is to limit Russia’s oil revenue and push Moscow towards peace talks regarding Ukraine.
Discounts Widen, Buyers Pull Back
In light of the new restrictions, Russian crude is now trading in Asia at its steepest discount to Brent in a year. Reports indicate that Indian and Chinese refiners have reduced their purchases, further pressuring Russia’s export routes.
Voyage Information and Current Locations
Data from OilX and LSEG shows that the tankers were loaded at Russia’s Baltic port of Primorsk in early October. One vessel has been anchored near the Mediterranean entrance of the Suez Canal since late October, while the other has passed through the canal and is now docked in the Red Sea.
Unidentified Suppliers and Ownership
The identities of the suppliers or sellers of the oil on these two tankers remain unknown. Both vessels are registered under the flag of Gambia, and attempts to reach their managers for comments have been unsuccessful.
Increasing Logistical and Commercial Challenges
The extended anchorage of these vessels underscores the mounting logistical challenges and commercial pressures facing Russia’s oil trade. As sanctions deter potential buyers and complicate deliveries, Moscow’s ability to maintain crude exports is increasingly under threat.
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Source: Reuters
