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#LCO Fleet of tankers loaded with Russian Urals oil has accumulated off the eastern coast of China after India, once the largest buyer of this grade, limited purchases amid Western sanctions. This is reported by Bloomberg.
According to Kpler, as of Wednesday, at least 5 vessels were idling in the Yellow Sea with 3.4 million barrels of oil, which is double the volume of the previous week and the highest figure for this grade in the region in over five years. This area is located near Shandong province, which is the center of independent oil refineries.
The accumulation of Urals off the coast of China is an atypical situation that has attracted the attention of oil traders worldwide. Chinese refineries usually do not buy this grade shipped from distant western ports, preferring Russian oil from eastern terminals due to geographic proximity and high diesel yield.
However, in recent weeks, increased U.S. scrutiny of oil flows from Russia to India, as well as sanctions against Rosneft and Lukoil, have pushed Urals sellers to seek other buyers in East Asia.
According to Kpler, as of Wednesday, at least 5 vessels were idling in the Yellow Sea with 3.4 million barrels of oil, which is double the volume of the previous week and the highest figure for this grade in the region in over five years. This area is located near Shandong province, which is the center of independent oil refineries.
The accumulation of Urals off the coast of China is an atypical situation that has attracted the attention of oil traders worldwide. Chinese refineries usually do not buy this grade shipped from distant western ports, preferring Russian oil from eastern terminals due to geographic proximity and high diesel yield.
However, in recent weeks, increased U.S. scrutiny of oil flows from Russia to India, as well as sanctions against Rosneft and Lukoil, have pushed Urals sellers to seek other buyers in East Asia.
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Oil prices switched to growth after initial losses on Tuesday due to dollar weakness, although the increase was limited by concerns about a possible recession in the U.S. and the impact of tariffs on global economic growth. This is reported by Reuters.
Investors are also closely monitoring OPEC+ plans as the group of producers is set to start increasing production from April.
Brent futures rose by 1.18% to $70.10 per barrel as of 13:46 Moscow time, after a decline at the beginning of trading. WTI contracts increased by 1.17% to $66.81.
The dollar index hit a 4-month low at 103.32 and was trading down nearly 0.4% at the time of writing.
The level around $70 for Brent remains a fairly strong support, and prices could technically rebound at current levels, according to Suvro Sarkar, head of the energy sector team at DBS Bank. He also noted that OPEC+’s response in the context of supply will remain flexible depending on market conditions.
"If oil prices remain below the $70 mark for an extended period, we believe that production growth may be suspended. #LCO #CL
Investors are also closely monitoring OPEC+ plans as the group of producers is set to start increasing production from April.
Brent futures rose by 1.18% to $70.10 per barrel as of 13:46 Moscow time, after a decline at the beginning of trading. WTI contracts increased by 1.17% to $66.81.
The dollar index hit a 4-month low at 103.32 and was trading down nearly 0.4% at the time of writing.
The level around $70 for Brent remains a fairly strong support, and prices could technically rebound at current levels, according to Suvro Sarkar, head of the energy sector team at DBS Bank. He also noted that OPEC+’s response in the context of supply will remain flexible depending on market conditions.
"If oil prices remain below the $70 mark for an extended period, we believe that production growth may be suspended. #LCO #CL
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