Oil exports from Russian Arctic to China to surge – Reuters

According to traders and Vortexa data provided by Reuters, volumes of Russian Arctic oil exported to China could show a sharp increase this month due to active ship-to-ship offshore transfers. Such a scheme helps guarantee that no tankers mentioned in the US sanction lists enter ports.

At least 4 million barrels of Arctic crude oil went through the process last week, and another 16 million are on their way or will arrive in the South China Sea this month, according to calculations by Emma Li, senior analyst at Vortexa.

China's oil imports from the Russian Federation are recovering amid ample supply, but the volume of supplies will eventually depend on logistical hurdles and interest from Chinese refiners, she added.

Arctic oil accounts for a tenth of Russia's offshore crude exports, which fell under expanded US restrictions in January, Reuters noted.

In March, China imported an average of 25,000 barrels per day of Arctic crude from Russia, according to Vortexa. As Reuters reports, light Arctic oil from Russia is now offered at discounts to Brent prices, and not at premiums as before.