• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 13 hours America should go after China but it should be done in a wise way.
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 7 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Russia Has Lost Over 90% Of Its European Oil Market Share

Russia has already lost over 90% of its previous top European market—northern Europe—as shipments have slumped to below 100,000 barrels per day (bpd) in recent weeks from more than 1.2 million bpd before the Russian invasion of Ukraine, according to Bloomberg’s estimates. 

The EU embargo on seaborne imports of Russian crude oil and the attached price cap mechanism on Russian crude are set to enter into force on December 5.

Russia has already lost more than 90% of its top market in the runup to February—the buyers in Rotterdam, with shipments to the Dutch hub in the four weeks to November 18 are down to just 95,000 bpd, per Bloomberg estimates.

Around 75% of the Russian crude oil now being loaded at the Baltic ports in Russia is heading to Asia, where Indian and Chinese buyers haven’t shied away from purchasing Russian cargoes, especially earlier this year, at deep discounts.

Now that the EU embargo and the EU-UK-G7 price cap are only two weeks away, signs have started to emerge that buyers in India, for example, are racing to secure supply loading before December 5 and discharging at the port of destination before January 19, which will not be subject to the embargo and price cap. 

But buyers in India and China are said to be wary of purchasing Russian oil loading after December 5, waiting for clarity about how the price cap would apply and whether there would be some fallout for buyers of Russia’s crude after the sanctions kick in.

The EU embargo on Russian oil will create huge uncertainties in the global oil and product markets in just a few weeks, the International Energy Agency (IEA) said in its monthly Oil Market Report last week.  

Amid signs of weakening oil demand growth, “The approaching EU embargoes on Russian crude and oil product imports and a ban on maritime services will add further pressure on global oil balances, and, in particular, on already exceptionally tight diesel markets,” the IEA said. 

ADVERTISEMENT

“A proposed oil price cap may help alleviate tensions, yet a myriad of uncertainties and logistical challenges remain,” said the agency.

By Josh Owens for Oilprice.com 

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News