It became known on May 30 that certain Asian countries now import more Russian oil than before, with India being the largest buyer. A surge in imports came after the Western world had imposed severe sanctions on Russia.
In the last week of May, Russian petroleum tankers transited between 74 million and 79 million barrels of oil, which is three times more than before the Russia-Ukraine conflict.
Russian oil flows to Asia soared to a record level in April, mainly thanks to increased purchases from India, analyst Jane Xie noted. “Some of the interested buyers in Asia are more motivated by economics rather than taking a political stand. That said, there has been an increase in US interest in India’s buying of Russian oil,” the expert emphasized.
Earlier this week, EU leaders agreed to ban most Russian oil from the block’s market. The embargo will target only seaborne imports, excluding supplies coming in by pipelines. More than two-thirds of Russian oil imports will be cut from the European market, President of the European Commission Ursula von der Leyen said. As much as 90% of oil imports from Russia to the EU will be phased out by the end of the year.
The ban on imports of Russian commodities enhanced oil flows to the Asian market. In this light, analysts thought that Russia would face some oil delivery issues. However, the country managed to handle those problems, including the lack of oil tankers.
Rising energy prices can help Russia partially undo the damages caused by the loss of the European oil market, experts estimated. At the same time, Asian countries will not miss a chance to buy Russian oil at a discount. According to Bloomberg, Indian buyers were aiming for deals as low as $70 a barrel in early May. Back then, Brent crude traded at $100 per barrel, swelling to $116 per barrel by the summer.
