Tankers carrying Russian oil stuck off coast of China

A fleet of tankers carrying Russia’s Urals crude oil has swelled off China’s east coast following a slowdown in purchases by India, the largest buyer of the grade, amid Western sanctions.

According to energy analytics firm Kpler, at least five vessels carrying roughly 3.4 million barrels were anchored in the Yellow Sea as of December 17 — double the volume recorded last week and the highest concentration in the region for Urals crude in over five years. The area is near Shandong province, a key hub for independent oil refiners, Bloomberg writes. 

Despite the buildup, Chinese refineries typically favor oil from Russia’s eastern terminals, which offers easier logistics and diesel of higher quality.

The surge in floating Urals stocks comes after India scaled back imports in response to tighter U.S. controls and sanctions targeting Russian energy companies Rosneft and Lukoil. Traders are now seeking new buyers in East Asia to absorb the redirected supply.

By Sabina Mammadli