Russia's Oil Industry Adapts to Shifting Trade Routes and Sanctions.
Western embargoes on seaborne imports of Russian crude and refined products have disrupted traditional oil shipping routes, leading to inefficient trade patterns and higher shipping costs for petroleum products. The EU ban on Russian petroleum products has resulted in Russia diverting its oil product cargoes to North Africa and Asia, while Europe has increased imports from the Middle East, Asia, and North America. This has boosted demand for tankers hauling petroleum products, with orders for fuel tankers soaring to the highest in a decade. The changes in clean petroleum product trade flows out of Russia have exacerbated tightness in the global market, with vessel requirements in the medium-range segment increasing and fleet growth staying limited for at least the next two years.