Page 8 - FSUOGM Week 40 2022

FSUOGM PIPELINES & TRANSPORT FSUOGM

Russian oil exports still booming

and the EU is still a major buyer

EU EXPORTS of Russian oil are still booming exports averaged 4.8mn bpd in March-Septem-
and while the EU has reduced its imports of ber, up 9% y/y.
China and India have crude from Russia it remains a major customer, The EU is less reliant on Russian crude than
stepped up as major according to the latest data from the commodity Russian refined products and particularly diesel.
importers this year, analytics firm Kpler. EU countries have imported an average of 1.2mn
however. While Russian exports of products to all bpd of seaborne crude during the seven months
destinations have moderately decreased since since the war began. That’s down an average of
the war began, the EU has actually increased its 320,100 bpd, or 21%, compared to the same
products imports from Russia since March. Over period in 2021, according to Kpler.
the past seven months, Russian seaborne prod- The average volume of EU crude imports
ucts imports accounted for an average of 28% of from countries other than Russia was 1.3mn
total EU product imports – double Russia’s share bpd higher in March-September versus the same
of the EU’s seaborne crude imports during the months the year before.
same period a year earlier. Europe’s switch from importing short haul
EU members continue to import a lot of Rus- Russian crude with much longer haul oil from
sian diesel/gasoil and have made no cuts in vol- the Middle East and elsewhere, means that
ume since the war began. One of the side-effects tanker demand, measured in tonne-miles, has
of the EU stepping up imports of US oil is that it soared. EU imports of seaborne clean products
has increased European demand for Russian die- from non-Russian sources were up an average
sel. US crude is lighter and sweeter than Russia’s of 193,381 bpd in March-September 2022 versus
sour Urals blend, so produces lighter fuels such March-September 2021.
as petrol, but less diesel, which has to be made up The EU’s average crude imports from Russia
with higher diesel imports from Russia. in September are down 668,926 bpd from Feb-
Russia’s seaborne crude exports, which ruary, but could fall off to nothing in December
account for three quarters of Russia’s exports, when a mooted oil ban comes into force. How-
averaged 3.4mn barrels per day (bpd) during the ever, confusion reigns on what will happen in
seven months since the war began, according to December, as the G7 finance ministers recently
Kpler’s data, a 17% increase on the same period agreed to implement an oil price cap scheme that
a year earlier. would allow unlimited imports of oil to the EU
And Russia’s clean products exports averaged but would cap the maximum price Russia could
1.4mn bpd in March-September, down 5.5% charge for the oil. Few details on how the scheme
year on year, American Shipper reports. Alto- will be enforced have been released, or at what
gether, Russia’s crude and products seaborne level the proposed cap will be set at. ™

P8 www. NEWSBASE .com Week 40 06•October•2022