Tightened U.S. sanctions on Moscow have disrupted a roaring trade in discounted Russian oil to China and India, reviving demand for Middle Eastern and African crudes, roiling shipping markets and driving up oil prices.

The Biden Administration’s farewell sanctions on Russian oil trade were the most aggressive yet and sanctioned dozens of vessels that Russia used to ship the ESPO crude blend from Kozmino to China’s independent refiners.

Crude futures settled off the day's lows, helped by a modestly positive report from the International Energy Agency that raised its global oil demand growth forecast for this year.

Crude shipments from Russia’s Sakhalin Island projects aren’t being discharged after the tankers carrying them were sanctioned by the US. About 6.3 million barrels of Pacific crude is being held on vessels that have been stationary for at least a week.

Tightened U.S. sanctions on Moscow have disrupted a roaring trade in discounted Russian oil to China and India, reviving demand for Middle Eastern and African crudes, roiling shipping markets and driving up oil prices.

Widened sanctions on Moscow by western countries including the United States have roiled global oil trade and forced buyers of discounted Russian crude to find new ways to maintain their purchases. "It is the responsibility of the supplier to deliver to me something that meets my requirements of compliance,

Chinese refiners are being offered Russian ESPO crude cargoes at lower prices as growing concern around US sanctions increase logistical and administrative hurdles, putting off buyers.