Russian oil tankers stranded at sea for months – China says no, will India step in? | World News

Moscow/New Delhi: For months, scores of Russian oil tankers have been operating in international waters without receivers or unloading points. The unusual sight of fully loaded crude oil ships sitting at sea suggests that Asia’s oil trade is changing, in part because India has reduced the amount of oil it buys.

Despite political claims to the contrary, India has not stopped purchasing crude oil from Russia. However, purchases have slowed compared to previous peaks. This moderation increased pressure on Moscow to relocate its barrels elsewhere in Asia, forcing traders to keep their cargo afloat while searching for new buyers.

US President Donald Trump recently claimed that India has stopped oil imports from Russia as part of the trade agreement with Washington. He suggested that New Delhi had agreed to buy more crude oil from the US and Venezuela instead.

On the ground, the situation looks more nuanced. Indian refineries continue to process Russian oil, although purchasing volumes have decreased. The Indian government has not issued an official directive asking companies to stop imports, although some refineries have delayed new spot orders.

Shipping data reviewed by market watchers shows the extent of the current bottleneck. At least a dozen tankers carrying Russia’s flagship Ural crude are sailing in the Indian Ocean region, according to global ship tracking firm Kpler. The routes took these ships over Malaysia, along the sea approaches of China, and near Russia’s eastern coast. Together they hold close to 12 million barrels of crude oil still waiting for solid buyers.

The background of this accumulation lies in the energy map after the Ukrainian war. Western sanctions have blocked Russian oil from many European markets in 2022. Moscow diverted flows to Asia by offering heavy discounts to secure demand. India has emerged as one of the largest buyers at this stage. Buying increased as refiners took advantage of lower prices.

Import levels currently indicate ongoing change. Bloomberg estimates that India imported about 1.2 million barrels of Russian crude oil per day in January. This figure was close to 2 million barrels per day by mid-2024. This reduction caused excess cargo to remain in circulation as traders negotiated alternative deals.

Russia sought aid through China and other regional recipients. Independent refiners in China have increased their purchases of Russian Ural crude oil. In January, imports reached nearly 500,000 barrels per day, the highest level ever. However, many Chinese processors prefer lighter grades such as ESPO and Sokol, which are easier to ship from Russia’s Pacific terminals.

Countries such as Indonesia occasionally buy Russian barrels, but their refiners also prefer lighter blends. A well-supplied global oil market has further complicated Russia’s efforts to secure replacement demand.

Additional tanker traffic highlights the redundancy. Ship tracking systems show more Urals cargo moving from the Atlantic basin towards Asia via the Mediterranean and Red Sea. Many ships list Singapore as their intended destination, but discharge ports change frequently depending on real-time purchasing interest.

Analysts say India’s readjustment of its sourcing strategy has contributed to a growing number of cargoes without locked contracts.

Beyond trade flows, this has also exposed humanitarian challenges at sea. Reports have emerged of crews being stranded for long periods on ships unable to dock. One such tanker, carrying about 750,000 barrels of Russian crude worth about $50 million, departed from the Russian Far East for China in early November and has yet to dock.

A senior deck officer from the ship described living conditions deteriorating during the hold. As weeks stretched into months, food stocks gradually dwindled, essential supplies became scarce, and crew morale weakened. The ship remains under strict surveillance in international waters after Chinese authorities refused permission to enter the port.

In December, the International Transport Workers Federation classified the tanker as abandoned after seafarers reported that they had not been paid for several months. The union stepped in to secure salary payments through the end of the year and arranged for the distribution of food, water and basic supplies. Some of the crew have since been repatriated, but others remain on the ship while the cargo awaits receiver.

Drifting tankers now symbolize a broader shift in global oil logistics. India’s moderate purchasing, China’s selective purchasing preferences, and ample supplies around the world have slowed Russia’s export momentum. How quickly Moscow can divert these floating cargoes will determine short-term pricing dynamics and tanker movements in Asian waters.