Russia Shunned - Joe Blogs

[TexasTowelie]

China is quietly changing its oil-buying strategy — and Russia is increasingly being left out.

In this video, we examine why Chinese refiners are turning to Iranian crude to replace lost Venezuelan supplies, despite Russian oil being available at similar — and in some cases deeper — discounts. When price is no longer the deciding factor, the real issue becomes risk.

We look at how sanctions exposure, shipping restrictions, and compliance concerns are reshaping global oil trade flows, leaving Russia with a growing and dangerous problem: unsold crude. An increasing volume of Russian oil is now floating on tankers at sea, effectively acting as offshore storage because buyers are unwilling to take delivery.

At the same time, purchases from both China and India are slowing, removing the two most important outlets for Russian exports. This combination — rising floating storage and weakening demand — is a warning sign for the entire Russian oil industry.

If Russia cannot sell its oil, it will be forced to cut production. That would have far-reaching consequences: lower export revenues, higher unit costs, damage to oil fields, job losses, and a significant hit to government finances. In an economy still heavily dependent on energy income, the knock-on effects could be severe.

This video explains why Russia’s oil problem is no longer just about discounts or logistics — it’s about being shunned by the market — and why that poses potentially catastrophic risks for Russia’s energy sector and wider economy.

Chapters:
0:00 Intro
1:37 TANKERS
4:40 SANCTIONS
8:05 RUSSIAN CRUDE
10:27 ASIA
12:42 VOLUMES
14:12 SUMMARY & CONCLUSION