China and India have suspended March purchases of Russian oil as U.S. sanctions drive up shipping costs, Reuters reported Tuesday, citing traders and shipping data.
The U.S. Treasury Department earlier this month targeted 183 vessels, including “shadow fleet” tankers used by Russia to bypass Western oil price caps, in a sweeping sanctions package aimed at undermining Moscow’s energy revenues.
As a result, shipping on Aframax tankers — which can carry around 100,000 metric tons — for Russia’s ESPO Blend oil surged to $6.5-$7.5 million for delivery to China and $9-$10 million for delivery to India.
Offers for ESPO Blend crude supplies to China in March rose to premiums of $3 to $5 per barrel above Brent Crude, which traded at $77.30 per barrel as of mid-Tuesday, Reuters reported.
Indian refiners have not yet received fresh offers for March deliveries from traders handling…
