- Comparable to February, Russia’s crude oil exports to Northern Europe decreased 92% over the four weeks ending November 18.
- This is a big departure from 2021, when Germany and the Netherlands were the largest European importers Russian oil.
- Russia’s crude duty revenue also fell to its lowest point since February.
A Ban by the European UnionThe most Russia crude oil agreement will come into effect in two weeks. This means the bloc could lose its credibility. Largest crude oil supplier
Even so, importers have already begun reducing their dependence on Russian energy supply — its key market Northern Europe has already slashed seaborne Russian oil imports by over 90%, according to Bloomberg analysisBased on vessel tracking data
Russia exported only 95,000 barrels of oil per day to Rotterdam (Netherlands) in the four weeks up to November 18. That’s down 92% from about 1.2 million barrels a day in early February — before Russia invaded Ukraine – according to Bloomberg. Bloomberg reported that Russia’s main Dutch trading port was Russia’s only destination for crude oil delivery in Northern Europe for a ninth consecutive Week.
This is significant because Northern European nations are dominated by this. Germany, the Netherlands, and PolandThey were the largest European importers of Russian oil by 2021.
Pipeline crude oil from Russia to EU is exempted by the December 5 ban. However, it only made up about 5% of the total pipeline crude. one-thirdAll Russian crude oil exports were to the EU in the last year. Russia was Russia’s largest single energy market.
According to Bloomberg, Russia’s total seaborne crude oil exports fell to 2.67 million barrels per day during the week to November 18 due to a slump in Northern Europe’s seaborne crude delivery.
This hit Moscow’s war chest, as oil revenues from crude-export duty fell to a weekly average of $127 million — its lowest level since February, according to Bloomberg.
Russia plans to export unsold oil to Asia
Russia is likely to see 1.1 million barrels of unsold crude a day after EU’s import ban kicks in, the International Energy AgencyLast Tuesday.
To make up for the deficit Russia exportsSignificantly more crude oil is being shipped to Asia, including India and China. In October RussiaIndia’s largest oil supplier has surpassed Saudi Arabian and Iraq. China has also seen 22% growth in Russian crude imports from Russia. September.
Janet Yellen, US Treasury Secretary told ReutersOn November 11, she was not too concerned about India and China buying Russian crude oil. However, the G7 will introduce a price limit for Russian oil. This will also be in effect on December 5.
Even if Russia continues to demand the fuel, the G7 expects the price cap will be applied to Russia’s oil revenues.
Russia appears to be adamant about the G7 price limit. Alexander Novak, Russia’s deputy prime Minister, stated Monday that it would not sell oil to anyone who enforces the G7 price cap on its exports. Interfax reported on Monday.
Novak reports that Novak stated that the company would instead sell its products “market-oriented partners” and reduce its oil production.
US benchmark West Texas Intermediate settled 0.4% lower at $79.73 per barrel on Monday, while Brent futures were 0.45% higher at $87.92 per barrel at 12.46 EST on Tuesday.
