5 million barrels of Russian oil on the way to India never arrived
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- Millions of barrels of Russian oil heading to India never reached their destination, per Bloomberg.
- The tankers holding the cargoes are now idling at sea.
- US sanctions on Russia may be part of why the ships never completed their deliveries.
Roughly five million barrels of Russian oil that was on the way to India never reached their destination, according to a Bloomberg report.
The cargoes of Russia's Sokol grade crude were supposed to arrive over the past four weeks, but instead the relevant tankers are idling at sea, miles out from their intended ports.
It's unclear why the ships haven't arrived, per the report, but sanctions on sellers moving Russian crude above the $60 price cap set by G7 nations may be part of the explanation.
The US Treasury has sanctioned eight ships tied to the crude cargoes since October, with six of them owned by Russia's Sovcomflot PJSC.
One vessel, which was headed to the port Vadinar in India, has been idle since November 16 near Sri Lanka, Bloomberg reported. Two more Sovcomflot ships heading to the same place have joined it in the past week.
Meanwhile, three other ships heading to the Paradip port in east India should have arrived by now but have not.
The issue comes as Russia's weekly oil flows rose to the highest level in five months in the seven days up to December 10, Bloomberg shipping data showed. Exports in that stretch hit 3.76 million barrels a day.
That increase comes as OPEC+ have committed to reducing crude production to help stabilize prices. The group plans to cut production by a total of 2.2 million barrels a day through the first quarter of 2024, with some of that coming from Russia.
Oil prices have softened over recent weeks amid a US production boom and an uncertain demand outlook. On Wednesday, West Texas Intermediate moved 1.69% higher to $75.18 a barrel. Brent crude, the international benchmark, climbed 1.51% to $80.46 a barrel.