Two Oil Tankers With 1.5 Million Barrels Of Russian Oil Idle At Sea Amid Sanctions

Two tankers carrying about 1.5 million barrels of Russian Urals crude have been left idling at sea near the Suez Canal for more than a week.

Tracking data from LSEG and OilX show that the vessels Sikar and Monte 1 were both loaded with crude at Russia’s Baltic port of Primorsk in early October.

The Sikar, which left on 6 October, has been anchored near the Mediterranean entrance of the Suez Canal since 24 October, while the Monte 1, which departed on 7 October, transited through the canal on 30 October and is now anchored in the Red Sea.

The United States and the European Union recently increased sanctions on Russia’s oil industry, targeting its two biggest producers, Rosneft and Lukoil, for the first time. Together, these companies are estimated to account for around 5% of the global oil supply.

The new restrictions are aimed at limiting Russia’s oil income and increasing pressure on Moscow to move toward peace talks over the war in Ukraine.

Following the new measures, Russian crude is being sold in Asia at its biggest discount to Brent in a year. Refiners in India and China, two major buyers of Russian oil, have reportedly cut back on their purchases.

The Sikar has listed Port Said as its destination, while Monte 1 does not have a confirmed port to discharge its cargo. Both ships are sailing under the flag of Gambia.

Glory Shipping HK Ltd manages the Sikar, and Mariam Ship Management Service operates Monte 1. Attempts to reach both ship managers for comment were unsuccessful.

Industry analysts said that the delay shows the growing problems Russia faces in exporting its oil. The tightening sanctions are discouraging buyers and making deliveries more difficult, leaving some tankers stuck at sea with no confirmed buyers.

Reference: Reuters

Source: Maritime Shipping News