Three Russian oil tankers carrying over 2 million barrels of crude are stranded off China’s eastern coast after being denied access to ports, following new U.S. sanctions targeting Russia’s energy sector.
The tankers, Huihai Pacific, Mermar, and Olia, were carrying Eastern Siberia–Pacific Ocean (ESPO) crude from Russia’s Kozmino port but were not allowed to dock at Chinese ports, including Dongjiakou and Yantai, according to Reuters.
The sanctions, announced by the U.S. Treasury on Friday, targeted Russian oil companies Gazprom Neft and Surgutneftegaz, shipping company Sovcomflot, and 183 vessels, including many in Russia’s “shadow fleet.” This fleet is used to transport oil while circumventing the G7 price cap of $60 per barrel.
According to reports, the sanctions have disrupted Russian oil shipments worldwide. At least 65 oil tankers, many tied to the shadow fleet, are currently idle near China, Singapore, and other locations.
The restrictions have reportedly tightened the global supply of tankers, driving up shipping rates, with daily earnings for supertankers rising by 10% on January 13 to around $26,000.
Trade analysts note that as countries like China and India seek alternative oil sources, demand for non-sanctioned tankers is increasing, further straining the shipping market.
