Russia’s Urals oil keep flowing to Asia in April, while softer freight rates help the grade’s sellers to reach far-away costumers, two traders said and Refinitiv data showed on Monday.

Urals oil cargoes loading in the first half of April are moving to India’s and China’s ports, according to Refinitiv Eikon data.

India accounts for more than 70% of the seaborne supplies of the grade this month and China accounts for about 20% so far, Reuters calculations showed.

Softer freight rates supported steady flow of the Russian oil to Asia, traders said.

Freight rates for Urals oil cargoes loading in Baltic ports for delivery to India’s ports softened to $7.5 million to $7.6 million, down from $8 million to $8.1 million for the shipment two weeks ago, two traders said.

The cost of tanker shipment from Baltic ports to China’s ports was at $10 million, which was also down from nearly $11 million a couple of weeks ago, they added.

Lower freight costs suggest that Russian oil suppliers secured enough vessels to ship the volumes even given long distances, according to the traders.

“Approaching summer season and a couple of months after the price cap announcement help market players to adopt and find enough vessels even given ample exports”, a source in Russian oil trade said.

On Dec. 5, the Group of Seven leading economies implemented a $60 price cap on Russian seaborne oil to try to limit Moscow’s financing.
Source: Reuters (Reporting by Reuters; Editing by Josie Kao)