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Who is buying bargain Russian oil in Asia?
Tankers full of Russian crude still entering Japan, South Korea, India, China. Nearly two months after Russia invaded Ukraine, much Russian oil continues to flow to Japan, South Korea, China and India, the latest tanker-tracking data shows.
Since the start of the war on Feb. 24 until April 18, a total of 380 oil tankers departed Russia, according to a Nikkei Asia analysis of data from Refinitiv. That is up slightly from 357 during the same period last year.
The number rose on the year even after massive civilian killings in Bucha, Ukraine, came to light on April 2. From that date through April 18, 119 tankers departed from Russia, compared to 109 last year.
Of the 380 tankers that departed since Feb. 24, 115 are or were headed to Asia: 52 to China, 28 to South Korea, 25 to India, nine to Japan and one to Malaysia. That represents an eightfold increase for India and a 33% increase for China over the same period last year. The numbers for the other countries were down 16%.
Major Western economies, such as the U.S. and the U.K., have announced they will stop importing Russian oil as part of their broader response to the war in Ukraine. Even before decisive government action, energy companies such as BP and Shell had said they would no longer buy from Russia due to a combination of shareholder pressure, reputational risk and logistical hurdles.
As a result, the benchmark price for Ural crude in Europe slipped by around 30% between early March and mid-April, falling from $111 to $78 a barrel, according to Refinitiv data. That price dip has given those willing to do business with Russia the chance to land a bargain.
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