The UK and EU have agreed to ban insurance for Russian oil cargoes, reports said.
US crude flows have seen an uptick in deliveries to Asia, Bloomberg data shows.
Buyers in China, India and South Korea have scooped up more than 20 million barrels this month, per the report.
The increase in American crude heading to Asia has dragged down spot premiums for Persian Gulf barrels.
The US is sending an increasing volume of crude to Asia, as the world’s top fuel-consuming region ramps up long-haul orders of supplies, according to a Bloomberg report.
For November deliveries, data shows an uptick of over 20 million barrels coming out of the US to China, India, and South Korea.
President Joe Biden’s releases from the Strategic Petroleum Reserve has led to crude flowing out of the country at a record clip, Bloomberg reports.
US crude exports hit 5 million barrels per day, Energy Department data showed last week, as it trades at a steep discount to Brent. On Monday, West Texas Intermediate dipped 0.3% to $90.53 per barrel, and Brent eased 0.3% to $96.47.
To be sure, Russian crude, which has seen a steep increase in flows to Asia since the war in Ukraine began, continues to flow to Asia as well and the nation’s production has beat expectations, according to the IEA.
Meanwhile, the increase in American crude heading to Asia has dragged down spot premiums for Persian Gulf barrels.
Bloomberg data shows that the premium of Oman crude futures to Dubai swaps, which is a barometer of the strength of Middle Eastern barrels in Asia, has slipped by more than 50% over the last month.