Asia is going bust on record Russian oil imports


Biggest buyers in Asia bought a record amount of Russian oil in November as major global importers rushed to stock up on cheaper oil ahead of an EU embargo and price cap on Russian oil effective December 5. Buyers almost went broke, laying out all their savings to stay with raw materials. OilPrice writes about this.


The lower base cost and the desire to secure the supply of raw materials before the imposition of sanctions against the Russian Federation create additional uncertainty regarding the shipping services and, possibly, a shortage of tankers. To cope with these tough market conditions, China, India, Japan and South Korea imported large volumes of crude oil in November despite weak Chinese demand due to renewed Covid restrictions.

Asian ports handled a record 29,1 million barrels of crude oil per day in November. Such data is provided by Refinitiv Oil Research. By comparison, Asian imports were 25,6 million bpd in October and 26,6 million bpd in September.

November's record imports may have been temporary, but for now, they show long-term prospects as Asian buyers look to stock up on oil from Russia. In November, Russia re-emerged as the top oil supplier to both China and India, surpassing Saudi Arabia to take first place in China, and overtaking another OPEC heavyweight, Iraq, as India's top oil supplier, according to Refinitiv data.

December 5, as the date of a turning point in the market, forces Asian traders to spend huge amounts of money on the purchase of Russian raw materials. Only because after this date prices will increase not only for oil, but also for the freight of tankers, as well as insurance, fees for passage of channels.
  • Photos used: pixabay.com
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  1. Anchonsha Offline Anchonsha
    Anchonsha (Anchonsha) 5 December 2022 12: 53
    +4
    The situation at world oil prices in connection with the G7 sanctions against our country is heating up and it is still unknown who will remain the most affected. We need to build up our oil transport links with Asian countries as quickly as possible, and refusing to supply Geyrop with our oil will have a negative impact on both the US and Geyrop. Naturally, we may have to reduce oil production and at the same time increase its domestic processing. I think that we will withstand this onslaught of the West.
  2. Anton Kuzmin Offline Anton Kuzmin
    Anton Kuzmin (Anton Kuzmin) 5 December 2022 13: 19
    -1
    Quote: Anchonsha
    The situation at world oil prices in connection with the G7 sanctions against our country is heating up and it is still unknown who will remain the most affected. We need to build up our oil transport links with Asian countries as quickly as possible, and refusing to supply Geyrop with our oil will have a negative impact on both the US and Geyrop. Naturally, we may have to reduce oil production and at the same time increase its domestic processing. I think that we will withstand this onslaught of the West.

    Both have already happened. We began to sell much more diesel fuel, and some of it was generally unofficial and leftist. Production is not yet, but sooner or later it will decrease even without taking into account desires. Simply due to the ratio of the depletion of deposits and the commissioning of new ones.
  3. Dmitry Volkov Offline Dmitry Volkov
    Dmitry Volkov (Dmitry Volkov) 5 December 2022 21: 51
    +2
    Cheers for a barrel of oil for 99 bucks and up drinks