Crude oil held by tankers at sea hits record 62 million barrels

After the Russia-Ukraine conflict, many Western countries imposed an oil embargo on Russia in an attempt to hit the local economy, and the amount of crude oil stored in offshore tankers hit a new high of 62 million barrels. Experts also pointed out that the Russian economy is facing a collapse, and the gross domestic product (GDP) is expected to shrink by 30% by the end of this year.

German Economy Minister Robert Habeck said in an interview that the European Union could reach a consensus on a ban on Russian oil within days, but warned that it would not immediately weaken Russia because oil prices would follow.

It is reported that most of the Russian crude oil is now sold to Asia, the main customers are China and India.

Russian Foreign Minister Sergei Lavrov said on Monday (23rd) that if Western countries propose to restore relations with Russia, the Moscow government will seriously consider whether it is necessary. However, he said Russia must reduce its dependence on the West in the supply chain and independently develop important areas that are beneficial to Russia’s security, economy and social climate.

Russian Foreign Minister: Supply chain must be less dependent on the West

Lavrov threatened that the economic ties between Russia and China will be accelerated, criticizing the West for adopting a “dictator” attitude to face Russia. He said that in order to increase national income, Russia will develop the Far East and eastern Siberia.

Robin Brooks, chief economist of the trade group of the Institute of International Finance (IIF), posted data on Twitter, saying that after the outbreak of the Russian-Ukrainian war, the Russian economy is facing a collapse, and Russia’s GDP is expected to shrink by 30% by the end of this year.

Brooks added that data compiled by IFF researcher Jonathan Pingle found that exports to Russia from 20 countries fell 20 percent in April from a year earlier. However, Russia benefited from a surge in oil and gas sales, with exports increasing by 64% year-on-year in April, with energy trade accounting for a larger share of Russia’s revenue.

Russia’s seaborne Urals volume fell to 6.7 million barrels a day in May after exporters struggled to find buyers after the United States and other countries announced they would stop importing Russian oil and oil products, according to data from British energy analysis firm Vortexa. , a decrease of about 15% from February.

Energy analyst Clay Seigle pointed out that while the figures reflect that Russia’s crude oil exports remain strong, they do not reflect the overall picture, as the amount of Urals crude sitting in tankers at sea also hit a new high of 62 million barrels. 15% of them have not yet been shipped to a destination, and the rest may be in transit to undisclosed locations, or may be unsold inventory.