Russian Oil Tankers Are Still Loading for the U.S., for Now

(Bloomberg) — Two cargoes of Russian oil loaded late last week for U.S. ports may be among the last shipments of their kind as the market seeks alternatives amid mounting sanctions against Russia’s financial system.

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Commodity trading giant Vitol booked vessels Elli and Matterhorn Spirit to carry a combined 780,000 barrels of either crude or fuel oil for delivery in the U.S. in March, according to data from oil analytics firm Vortexa. There has been no new bookings of Russian oil for the U.S. since February 21st, according to shipping reports compiled by Bloomberg. Existing bookings show Friday is the last day for a Russian cargo to load for the U.S.

Although the U.S. has vowed to avoid directly sanctioning Russia’s oil exports, the dearth of future cargo bookings from the nation point to an underlying wariness about the possibility of future actions. Still, some European oil buyers appear to be overcoming an initial reticence about buying crude from Russia.

The two cargoes are part of the 12.4 million barrels of Russian crude and refined products already enroute to the U.S., according to Vortexa. It typically takes three to four weeks for a tanker to sail from Russia to the U.S.

U.S. traders have been seeking alternatives to Russian oil as sanctions remain on the table. Meanwhile, the U.S. and its allies are considering releasing about 60 million barrels of crude from emergency stockpiles to quell supply fears amid mounting sanctions against Russia.

Russia is a regular supplier of crude and fuel oil for U.S. refineries equipped with coking units that can upgrade heavy feedstocks to gasoline and diesel. It is also a swing supplier of naphtha to the U.S., typically used for gasoline blending as well as vacuum gasoil, a refinery feedstock for making gasoline and a blending component for bunker fuels.