Record High Cargoes of Russia’s Flagship Crude Oil at Sea

HOUSTON (Reuters) – Approximately 62 million barrels of Russia’s flagship Urals crude, marking a record high, are currently sitting on vessels at sea, according to data from energy analytics firm Vortexa. Traders are facing challenges in finding buyers for the crude.

Following Russia’s invasion of Ukraine, the United States and several other nations have prohibited imports of Russian crude and oil products. Many others are reluctant to purchase cargoes due to concerns about future sanctions, prompting the European Commission to consider an embargo on Russian oil.

Vortexa reported that the volume of Urals crude oil at sea is three times the average seen before the conflict. Furthermore, Russian seaborne oil exports have declined to 6.7 million barrels per day (bpd) this May, which is about a 15% decrease from the 7.9 bpd recorded in February.

“The headline numbers suggest Russian exports are still relatively robust, but that doesn’t capture the complete picture,” remarked energy strategist Clay Seigle from Houston. “Russian oil at sea continues to accumulate.”

Seigle noted that 15% of Urals cargoes at sea currently have no designated destination, also a new high. Some of this oil may be en route to undisclosed buyers, while other cargoes remain unsold.

Most of the Russian crude oil is headed towards Asia, primarily India and China, with some increases in volumes to Europe in anticipation of a potential ban.