• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 6 hours The United States produced more crude oil than any nation, at any time.
  • 17 hours China deletes leaked stats showing plunging birth rate for 2023
  • 1 min The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 5 days Bad news for e-cars keeps coming

Tanker Operators Are Raking It In Sending Russian Oil To China

Tanker operators willing to ship Russian crude are making a substantial amount of money sending Russian crude to China from Russia’s Far East.

According to data compiled by Bloomberg, by shipping Russian ESPO crude from Kozmino to the Chinese coast, a ship owner can make $1.6 million—three times what they would have made before the war in Ukraine.

The report cited shipowners who said that industry players from Greece, China, and Turkey are eagerly taking advantage of the situation. Normally, they use Aframax tankers, which can carry about 730,000 bpd of crude, and transport ESPO from the Kozmino port on Russia’s Pacific coast.

The journey from there to China takes five days, the Bloomberg report notes, which reduces the downtime for tankers that then return empty to Kozmino, making the route particularly lucrative, according to shipping industry sources.

China has become the main destination for Russian oil, along with India, since Moscow invaded Ukraine in late February. The European Union has announced plans to impose an embargo on Russian oil imports later this year, but in the meantime, it is taking in all it can to stock up ahead of the embargo.

Related: The Futuristic Vehicles That Could Compete With EVs

On a broader global scene, the G7 earlier this month discussed setting a price cap on Russian export crude in a bid to curb the country’s revenues from oil and gas sales while keeping the global market well supplied.

In a note commenting on the idea, JP Morgan analysts warned that should Russia retaliate for the price cap, it could push oil prices to some $380 per barrel.

In the first three months since the start of what Moscow calls a special military operation in Ukraine, it made $97 billion from oil and gas exports, according to a Finland-based pollution think-tank, the Centre For Research on Energy and Clean Air.


By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Steve Harkins on July 05 2022 said:
    All of the above may be true at this moment, but one drops the Crimea bridge trestle into the channel. Everything changes.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News