STORY: Chinese and Indian refiners are scouring the globe for supplies of crude, according to traders speaking to Reuters..
It follows a move by the US last week to impose sanctions on Russian oil producers Gazprom Neft and Surgutneftegas.
Plus 183 vessels that have shipped Russian oil.
The sanctions target the revenues Moscow has used to fund its war with Ukraine.
On Monday, China reiterated its opposition to unilateral U.S. sanctions.
Many of the tankers have been used to ship oil to India and China as Western sanctions and a price cap shifted trade in Russian oil from Europe to Asia.
Some tankers have also shipped oil from Iran, which is also under sanctions.
Russian oil exports are expected to be hurt severely by the new sanctions, according to two Chinese trade sources.
The expected disruption in Russian supply drove global oil prices to their highest in months on Monday (Jan. 13).
Among the newly sanctioned ships, 143 are oil tankers that handled more than 530 million barrels of Russian crude last year.
One analyst told Reuters that’s about 42% of the country’s total seaborne crude exports.
He added that of these, about 300 million barrels were shipped to China while the bulk of the remainder went to India.
The new sanctions could push China and India back into the compliant oil market to seek more supply from the Middle East, Africa and the Americas.
Spot prices for Middle East, Africa and Brazilian grades have already risen in recent months on rising demand.
