After a trade deal with the US, Indian refineries are increasing crude oil purchases from Venezuela, which may result in a decrease in Russian oil imports, causing potential crises for Russia's customer base.
Following a recent trade agreement between India and the United States, Indian refineries have ramped up the purchase of crude oil from Venezuela. This shift has reportedly led to a decline in imports of Russian oil. As a result, Russia is facing a growing crisis regarding its reliable customer base. Many tankers loaded with Russian oil are reportedly wandering aimlessly in the Indian Ocean, as their actual destinations are being concealed. This situation indicates efforts by Russia to navigate around Western sanctions while trying to sell its oil.
Reports indicate that several Russian oil tankers are using Singapore as a fictitious destination to obscure their true routes. The data from traders and the London Stock Exchange Group (LSEG) suggests that this might signify a shift of Russian oil supplies towards China rather than India. However, due to western restrictions, China is also exhibiting caution regarding its dealings with Russian oil, which adds another layer of complexity to the situation.
In January, about 1.4 million metric tons of Russian crude oil were dispatched to Singapore, an unusually large quantity given that Singapore hasn't ordered such volumes in recent years. This trend paints a picture of how geopolitical factors, driven by sanctions and trade shifts, are influencing oil markets and customer relationships, leaving the global oil landscape unsettled and dynamic.
