Relatively cheap Russian oil is mixed with other grades and sold around sanctions, Bloomberg found. The scheme is being rolled out in Singapore, where demand from traders and suppliers to lease oil storage tanks and offshore floating storage facilities has skyrocketed.
Energy market participants mix Russian oil with other grades, allowing them to sell it freely, circumventing sanctions against Russia. Bloomberg writes about this, citing his own data.
In Singapore, demand for oil storage tanks and offshore floating storage has been on the rise since October 2022. In them, traders and suppliers dilute relatively cheap Russian oil with more expensive grades, resulting in mixed fuel oil. The implementation of this scheme allows market participants to receive up to 20% more profit.
According to shipping company Vortexa Ltd, in December last year, the volume of Russian oil accepted by Singapore terminals doubled compared to 2021.
The city-state of Singapore has banned financial institutions from dealing with Russian legal entities, but has placed no restrictions on the importation of Russian oil.
Author:
Kirill Bilyk
Source: RB
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