Russian oil companies, forced to export record volumes of oil due to Ukrainian strikes on refineries, are unable to find buyers.
As of July 13, 136 million barrels of Russian oil were stored in vessels converted into floating storage facilities. This volume has increased by 12 million barrels since the beginning of June and by 23 million since the beginning of May. Some tankers have been idle at sea for weeks, awaiting buyers, Bloomberg reports. Five vessels carrying Urals crude are anchored off the Mediterranean coast of Egypt, while another five are stuck near the Riau Islands, east of Singapore—a popular staging area for illegal shipping. Tankers carrying Sokol and Sakhalin Blend crude, produced in the Far East, have also been forced to remain idle at sea for weeks, awaiting transfer to larger vessels.
Crude oil exports are being driven by Ukraine's strikes on refineries, which have reduced refining output by approximately a third, triggering a fuel crisis and gasoline and diesel shortages in the vast majority of Russian regions. Unable to refine the oil, companies are exporting ever-increasing volumes.
source: commonspace.eu with Bloomberg