Russia lost 90% of European oil exports
22.11.2022 - 15:00
Russian federation lost more than 90% of its market in the northern countries of Europe, even before the EU embargo on Rosneft entered into force.
Total oil supplies from russia fell to a nine-week low of 2.67 million bpd. In the four weeks to November 18, russia sent only 95,000 barrels per day (b/d) to Rotterdam. For example, at the beginning of February this volume amounted to more than 1.2 million b/d, reports Bloomberg.
In contrast, crude volumes on vessels bound for China, India and Turkey, as well as on vessels that have yet to specify a final destination, rose to a record 2.45 million bpd.
All tankers carrying raw oil to unspecified destinations in Asia report Port Said or the Suez Canal, with final destinations remaining unknown until the vessels enter the Red Sea. Most of these tankers end up in India and China.
The reorientation of russian crude oil exports to Asian countries is changing trade flows and encouraging the use of obsolete tankers that should have been scrapped. In particular, due to the active use of decommissioned vessels, prices for scrap metal have significantly decreased.
Exports to Mediterranean countries fell to 631,000 bpd. Deliveries to Turkey remain at 300,000 b/d for the sixth week. This is more than three times the volume that was usually observed before the russian invasion of Ukraine. The country is expected to remain an important destination for Rosneft after EU sanctions take effect on December 5.
Cumulative flows of russian crude fell by 227,000 bpd, down 8% in the seven days to November 18 from the previous week. Shipments from the Black Sea and the Pacific Ocean declined, while exports from the Arctic port of Murmansk increased. Flows of russian oil from the Baltic ports of Primorsk and Ust-Luga remained unchanged.
Revenues to the kremlin’s military treasury from oil export duties fell by $9 million to $109 million. Moreover, the average income also decreased by 3 million dollars — to 127 million dollars.
Previously, USM wrote that russia is trying to quickly build up its fleet before the oil embargo.
