For Russian oil, tougher sanctions imposed a month ago by the outgoing Biden administration have driven up costs for refiners in China and India, with March ESPO Blend crude traded at $2 to $3 above ICE Brent on a DES basis to China, the highest premiums in more than two years, three trade sources said.

Tightened U.S. sanctions on Moscow have disrupted a roaring trade in discounted Russian oil to China and India, reviving demand for Middle Eastern and African crudes, roiling shipping markets and driving up oil prices.

A huge and growing amount of Russian and Iranian oil is stuck on tankers worldwide as Western sanctions continue to impede cargo delivery, experts believe. Oil prices and freight rates are up amid a lack of suitable vessels, while fewer Chinese and Indian refiners are willing to receive barrels on blacklisted ships.

Russia is facing the threat of a reduction in oil production due to US sanctions and Ukrainian drone attacks. Source: Reuters Details: Reuters noted that the US sanctions have complicated access to tankers supplying oil to Asia,

The latest US sanctions against Russia’s oil sector have led to the suspension of most Russian tankers. Source: Bloomberg Details: Currently, 94 out of 154 tankers sanctioned under the Biden administration have stopped transporting Russian oil.

The sanctions, which targeted Gazprom Neft, Surgutneftegaz, and 180 shadow fleet tankers, have created a surplus of oil in Russia that cannot be exported abroad. The ports of Ust-Luga, Primorsk on the Baltic and Novorossiysk on the Black Sea have seen a 17% drop in January export deliveries,