Russian Crude Piles Up as Refinery Strikes Cripple Oil Flows
The article details a significant logistical challenge faced by Russia, stemming from Ukrainian drone strikes on its oil refineries. These attacks have compelled Moscow to increase its export of raw crude oil, leading to a surge in stored crude on tankers, nearing 135 million barrels. While seaborne crude exports have remained high, the volume of actual deliveries to buyers has not kept pace, resulting in a substantial buildup of cargo at sea. This shipping logjam is attributed to the inability to refine oil domestically, forcing Russia to reroute unrefined crude internationally, with significant delays observed for various crude grades awaiting transfer. Consequently, Russia’s financial returns from crude exports have diminished, reflecting the operational and logistical strains imposed by the escalating Ukrainian campaign against its oil infrastructure.
John Q. Hosedrinker