Russian oil diversion: Tankers bound for China make U-turn to India

New Delhi: At least seven oil tankers originally destined for China have performed an abrupt "U-turn" in the South China Sea and are now racing toward Indian ports, reported Bloomberg. This dramatic shift comes as New Delhi aggressively ramps up its intake of Russian crude to counter a massive supply void caused by the escalating war in Iran and the subsequent closure of the Strait of Hormuz.

The rerouting of these vessels, monitored by ship-tracking firms Vortexa Ltd. and Kpler, highlights India’s return as a dominant buyer of Russian energy. Leading the charge is the Aqua Titan, an Aframax tanker carrying Urals crude loaded at a Baltic Sea port in late January. Originally signalling for the Chinese port of Rizhao, the vessel executed a sharp U-turn in Southeast Asian waters in mid-March. It is now scheduled to arrive at New Mangalore on March 21.

Similarly, the Suezmax tanker Zouzou N., which departed from the Black Sea with Kazakh CPC Blend crude, reversed its course in early March. After initially heading toward China, the vessel is now signalling for Sikka, India, with an estimated arrival date of March 25. 

The pivot follows a critical tactical move by Washington. On March 6, the U.S. Treasury issued a temporary 30-day waiver, often referred to as the "Epic Fury" concession, allowing Indian firms to purchase Russian oil already at sea. This window was opened specifically to alleviate the global energy pressure caused by the Iranian crisis, which has seen Brent crude prices surge past $100 per barrel. In the week following this waiver, Indian refiners reportedly purchased a staggering 30 million barrels of Russian oil, nearly exhausting the available spot market supply.

Industry analysts suggest this reshuffling of the energy map marks the end of China’s period as the "importer of last resort" for Moscow. For months, Beijing capitalised on deep discounts as India scaled back purchases under Western pressure. Now, with major Indian refiners like Reliance Industries and Indian Oil Corp back in the market alongside buyers from Japan and South Korea, competition for Russian barrels is intensifying. This surge in demand is expected to narrow the discounts on Russian Urals and potentially drive export prices higher, even as the world grapples with the largest oil supply disruption in history.