The US Strikes Russian Oil: How New Sanctions Will Change the Global Market.

The US has imposed new sanctions on the Russian oil sector

The US Department of the Treasury implemented new sanctions against the Russian oil sector on January 10, which could seriously alter global oil trade. The sanctions target Russian companies Gazprom Neft and Surgutneftegas, as well as 183 vessels that transported Russian oil. This was reported by Reuters.

Particularly significant consequences may arise for the Asian market, as sanctioned tankers delivered over 530 million barrels of Russian oil last year, accounting for about 42% of total sea exports.

Of this, approximately 300 million barrels were delivered to China, while the rest were mainly sent to India.

'These sanctions will significantly reduce the number of vessels available for transporting oil from Russia in the near future, leading to an increase in freight rates,' commented Matt Wright, a leading shipping analyst at Kpler.

Statistics show that in the first 11 months of 2024, Russian oil imports to India rose by 4.5% compared to the previous year, reaching 1.764 million barrels per day, which accounts for 36% of the country's total imports. Chinese imports also increased by 2%, reaching 99.09 million metric tons.

Experts predict that the new restrictions will force Asian buyers to seek other suppliers from the Middle East, Africa, and America. According to Vortexa analyst Emma Lee, the export of Russian oil of the ESPO Blend grade is particularly at risk, although much will depend on China's stance on compliance with the sanctions and potential changes in US policy after the presidential elections.

The market is already reacting to the new restrictions - prices for alternative grades of oil are rising due to increased demand from Asian buyers amid the reduced availability of Russian and Iranian oil.

Earlier, Zelensky reacted to the largest US sanctions against the Russian oil industry.