China’s hesitation over Russian oil leaves Big Star tanker idle offshore

The VLCC tanker Big Star, laden with approximately 2.1 million barrels of Russia’s ESPO Blend crude oil, has been anchored near China amid indications of subdued regional demand.

The tanker consolidated its cargo through ship-to-ship transfers from three Aframax vessels — Leftkada, Kai Fu, and Centurion I — between May 12 and May 17 off Russia’s Far East port of Zarubino. Following this, Big Star set sail for Jieyang in China’s Guangdong province but subsequently halted, raising questions about the underlying market dynamics, Caliber.Az reports, citing foreign media.

Traders suggest that the delayed placement of these cargoes may have contributed to the absence of buyers. In typical Asian oil markets, cargoes are often sold approximately six weeks ahead of loading, a window seemingly missed by these shipments. The original cargoes were loaded from Kozmino port in late April and early May, preceding the transfer to Big Star, according to LSEG data.

Notably, it is uncommon for ESPO crude — given Kozmino port’s close proximity to China — to undergo ship-to-ship transfers or be held in floating storage, highlighting unusual logistical choices amid current market conditions.

China’s appetite for Russian crude has been tempered by concerns over potential secondary sanctions from the United States, causing many Chinese state oil companies to exercise caution. Data from commodity analytics firm Kpler indicates that China’s seaborne imports of Russian oil plunged to a 26-month low in February, averaging 970,000 barrels per day. Although demand partially recovered due to purchases by private “teapot” refiners, challenges persist.

After May 23, Big Star briefly lost its ship-tracking signal before reappearing near the Senkaku Islands, close to Taiwan, on May 25, where it has remained anchored since, per LSEG monitoring.

By Vafa Guliyeva