China welcomes Russian oil ship amid US sanctions challenges
After an extensive search for a port to accept Russian oil, a ship subject to American sanctions was finally welcomed in China. Recent events illustrate how supply chains are being adjusted in response to US sanctions, notes Bloomberg.
According to ship tracking data from Bloomberg and Kpler, the Aframax-class ship Huihai Pacific eventually unloaded nearly 770,000 barrels of ESPO oil in China.
Independent Chinese refineries, commonly known as teapot refineries and concentrated in Shandong province, have so far eagerly accepted ESPO and Sokol oil from the Russian Far East due to attractive discounts and short transport times, notes Bloomberg.
However, in the current scenario, they may be compelled to bear significantly higher transportation costs to continue their purchases.
Initially, Huihai Pacific intended to reach Dongjiakou, a port in Shandong, but it ultimately spent almost four weeks at sea. This greatly exceeded the usual travel time from Kozmino to China, which takes less than a week.
Recent events demonstrate how supply chains are being adjusted in response to US sanctions, notes Bloomberg.
