Denmark, Copenhagen – 22 December 2024.  

The U.S. is preparing harsher sanctions on Russia’s oil trade, according to Bloomberg. The aim is to pressure the Kremlin economically. Details are expected soon, including potential measures against shipping fleets. Questions remain, however, about the effectiveness of such sanctions, especially given China’s continued purchases of sanctioned Iranian oil, and whether a Trump-led administration would follow the same approach.

Russian crude exports, excluding CPC, have averaged 3.5–3.8 million barrels per day (mmbd) in 2024, with over 80% heading to China and India. Turkey follows as the third-largest importer (0.2–0.3 mmbd), with smaller volumes reaching Italy, Romania, and Bulgaria.

Stricter sanctions could benefit the crude tanker market if ceded Russian barrels are replaced by exports from OPEC or the Atlantic Basin.

Source: Pareto Shipping