Russian Oil Trade Squeezed: Tankers Stranded Near China, Europe Demands Lower Price Cap

Three tankers carrying Russian oil are stranded off China's coast following new U.S. sanctions targeting Moscow's "shadow fleet," Orda reports, citing Bloomberg.

The vessels, reportedly carrying over 2 million barrels of Eastern Siberia–Pacific Ocean (ESPO) crude from Russia's Kozmino port, have been forced to divert from their planned Chinese destinations.

The ships are reportedly part of a more extensive network of vessels used to evade international oil sanctions.

This development comes just days after the U.S. and U.K. announced their most comprehensive sanctions yet on Russia's oil sector, targeting over 180 vessels along with Russian energy companies and officials.

Reuters reported on January 8 that the situation has been complicated by China's Shandong Port Group's decision to ban U.S.-sanctioned tankers from its ports.

Meanwhile, according to The Kyiv Independent, six European nations - Sweden, Denmark, Finland, and the Baltic states - are pushing for even tighter restrictions. 

They've urged to lower the G7's $60 per barrel price cap on Russian oil, arguing that market conditions allow stronger measures to cut off Moscow's war funding without disrupting global oil supplies.

Reuters also reports that the sanctions will limit Russia's oil supplies to China and India.

The two nations' oil refineries seem poised to purchase more oil from the Middle East, Africa, and America, which may cause prices and transportation to rise.