Millions of barrels of Russian oil on ice due to US sanctions

Almost 48 million barrels of Russian crude could remain stuck in the water oildue to the sanctions imposed on USA today (21.11.2025), prompting dozens of tankers to seek alternative destinations in the latest restructuring of global oil trade.

In particular, Washington’s move last month to blacklist top oil producers Rosneft PJSC and Lukoil PJSC is arguably its most aggressive move yet under the current administration, as President Donald Trump tries to pressure the Kremlin over the war in Ukraine. The U.S. Treasury Department said earlier this week that the measures were already successful, given weaker demand and discounts on key Russian oil grades, according to Bloomberg.

With the restrictions going into effect at 1:01 p.m. Singapore time on Friday, Indian refiners are scrambling for backup supplies, shutting down tankers for cargoes from the Middle East at a pace that has pushed freight rates for the route near a five-year high. Meanwhile, traders are keeping a close eye on the end buyers – if any – for the Lukoil and Rosneft crude already at sea.

“Russian export flows are holding up, but have yet to find their way to their destinations,” said Warren Patterson, head of commodity strategy at ING Groep NV. “If this continues and eventually fully accelerates, we could start to see a reduction in supply, which will be a concern for the markets.”