Feb 23 2023
From OPEC's market share in India's imports falling to a decade low to China's appetite for Russian crude posting double-digit growth, one year of conflict between Russia and Ukraine has dramatically altered Asia's oil flow map.
As Moscow witnessed sanctions and restrictions, plentiful availability of discounted Russian crudes whetted the appetite of import-dependent Asia, which saw it as an opportunity to bring in as many cargoes as possible to cushion the impact of sky-high global energy prices.
The trend is expected to continue in 2023. The first sign of that was visible in January numbers. According to data from S&P Global Commodities at Sea, Russian seaborne crude exports hit an eight-month high in January, with exports to China and India hitting record highs of 1.12 million b/d and 1.3 million b/d, respectively.
And in 2023, the overall volume of oil shipments from Russia to Asia is expected to rise since more Russian oil products are expected to flow, in addition to the robust volumes of crude, as the EU ban on Russian products came into effect on Feb. 5.