Russian Crude Tankers Queue Near China as Trade Flows Shift Away From India

Tanker-tracking data indicate that up to 12 million barrels of Russian crude are currently heading toward or idling near China, underscoring a shift in trade flows as Indian buyers scale back purchases amid sanction and pricing pressures. Several tankers carrying Russian grades in East Asian waters are listed as “for orders,” suggesting that cargoes lack confirmed end-buyers even as they gravitate toward the world’s largest crude importer. The backlog reflects ongoing rerouting of Russian barrels from traditional markets, with potential implications for regional refining margins and arbitrage flows that could influence benchmarks such as Oil – Brent Crude and U.S. benchmark Oil – US Crude as traders assess demand from China and alternative outlets for Russian supply.

Over the past month, both key crude benchmarks have posted double-digit percentage gains, with Oil – US Crude up about 13.1%, while Oil – Brent Crude has risen roughly 13.1%, reflecting tightening supply expectations and resilience in global demand despite macroeconomic uncertainty. Short-term technical indicators remain constructive: the 1-day signal for U.S. crude stands at Strong Buy, and Brent likewise registers a Strong Buy, suggesting momentum traders currently favor continued upside. However, the accumulation of Russian barrels offshore China and Singapore introduces a potential overhang; if these volumes are eventually discounted into the market, they could temper recent price strength or increase volatility around these benchmarks. Investors can explore more updates, prices, and analysis across global markets at Commodities.