Russia's Oil Tanker Logjam Crushes Prices Even as Exports Surge
The amount of Moscow’s crude on tankers has risen by 28% since the end of August
Russia shipped 3.68 million barrels a day of crude in the four weeks to Dec. 7, but undelivered barrels hit a new high.
Photographer: Marcelo del Pozo/BloombergRussia is loading its oil onto tankers at an unprecedented pace — but those shipments are stacking up at sea, weighing on prices and undermining Moscow’s ability to finance its war in Ukraine.
While the country’s crude exports rose strongly for a second week, offloading the cargoes is proving a major challenge. That, combined with longer voyages as ships divert to China from India, has driven a 28% jump in Russian supplies at sea since the end of August. The resulting 2 1/2-year high for the glut of Russia’s oil on water is one of several factors depressing prices and curbing the revenues that the Kremlin needs to refill its war chest.