Russia lost 60% of oil sales by sea in Europe
11.10.2022 - 09:50
Russia has lost 60% of its raw oil shipping market in Europe after launching a full-scale invasion of Ukraine.
In the next two months, the market for russia will almost completely disappear, and new sanctions will make it difficult to redirect flows to other directions, Bloomberg reports.
Russian oil supplies to Europe averaged 630,000 barrels a day a month ago, down from 1.62 million before the full-scale war began.
Tankers carrying russian oil now take four times as long to deliver to India as they did to the Netherlands, or ten times as much as to deliver to Gdansk.
The rate of sea exports of russian oil at 604,000 barrels per day is the lowest rate for the year. Flows fell by 56,000 barrels per day, or 8%, compared to the period through September 30. These figures do not include deliveries to Turkey.
The eighth package of sanctions adopted by the EU in response to russia’s annexation of part of Ukraine includes a ban on the transportation of russian raw oil anywhere in the world by EU tankers. Also, from December 5, the decision to limit the price of oil from russian federation comes into force. Buyers of russian oil will be able to use European ships, insurance and other services if the price they pay is below a certain “threshold”.
Russia has said it will not sell its oil to anyone who imposes a price cap, and has warned that its implementation could lead to a cut in the country’s production and that its main consumers are unlikely to approve of the plan. Nevertheless, the existence of such a mechanism is expected to increase the bargaining power of key customers — China, India and Turkey — vis-à-vis of russia on future purchases.
Rosneft flows to Turkey, India and China in June reached a record of 2.2 million barrels per day. A month ago, this indicator decreased by approximately 320,000 barrels per day.
