Russian Urals crude oil piling up at Chinese ports

As India's import demand declines, Russia is hoping China will take on more supply. On the surface, economic sanctions have restricted the flow of oil and gas, but in reality, they have only changed the rules of the game—floating storage has become the new normal, and price wars have followed.

What have sanctions changed? Not completely cutting off supply. The issue is that oil and gas trade has become more complex, less efficient, and cheaper. Rerouted shipping routes, increased middlemen, and risk premiums are reflected in prices. The result is: oil is still flowing, but the destinations, costs, and prices have changed. For investors seeking energy diversification, these market fluctuations and the resulting price dips are worth paying attention to.