Disclaimer: This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine.
Russia has ramped up diesel supplies to Turkey and Morocco, seeking to reroute its oil products ahead of an EU embargo, data from traders and Refinitiv showed.
The European Union has agreed a full ban of Russian oil products imports from February 2023 in an attempt to cut Russia's revenues for its role in the military conflict with Ukraine.
Russia will divert its supplies to Asia, Africa and Latin America, Russian Deputy Prime Minister Alexander Novak said.
Diesel supplies from Russian ports to Turkey increased in December, 2022 to more than 750,000 tonnes and totaled 5.05 million tonnes in 2022 versus 3.99 million tonnes in 2021, Refinitiv data showed.
Since the start of January, Russia has already supplied Turkey with about 450,000 tonnes of diesel.
Diesel supplies from Russia to Morocco ramped up to 735,000 tonnes in 2022 after only 66,000 tonnes the previous year and totalled about 140,000 tonnes since the start of 2023.
Several cargoes were also supplied from Russia to Ghana, Senegal, Libya and even Uruguay and Cote D'Ivoire, according to Refinitiv.
Meanwhile, Europe still imports the main bulk of Russian diesel, filling tanks ahead of the deadline on Feb. 5.
Not only will the EU embargo have an impact on rerouting Russian diesel supplies, but also price caps, which the Group of Seven (G7) coalition plans to impose.
"I suppose, Russian barrels in Europe will be somehow replaced by supplies from Asia and Middle East, but the price is the question," a trader said.
Deputy Prime Minister Novak said in December, that it was better for Russia to cut oil production than to agree to a price cap imposed by Western countries. An European Union embargo on Russian oil products might lead to price rises for oil products in Europe, Novak added.
Recommended Reading
S&P Lowers Currency Ratings on Argentine Producers
2023-03-31 - S&P Global Ratings lowered the local and foreign currency ratings to ‘CCC-’ from ‘CCC+’ on Pampa Energia S.A., YPF S.A. and nine other entities, which all now have a negative outlook.
Energy Transition in Motion (Week of March 31, 2023): Advancing Projects, Investment
2023-03-31 - Here’s a look at some of this week’s renewable energy news, including plans to add offshore wind capacity globally.
Norway’s PGS Places $450 Million Bond
2023-03-31 - Norwegian marine geophysical company PGS ASA placed a new $450 million senior secured bond, which together with cash on hand will be used to repay the company’s B term loan.
Brad Gray on Diversified’s Strategy Past Appalachia [WATCH]
2023-03-30 - Diversified Energy’s Brad Gray sat down with Pietro Pitts at Hart Energy’s DUG Haynesville Conference in Shreveport to talk about what Diversified is doing to set itself apart from other E&Ps and future plans as the company expands outside of the Appalachian Basin.
SM Energy Announces $0.15/Share Quarterly Cash Dividend
2023-03-30 - SM Energy's board of directors announced the quarterly cash dividend of $0.15/share of common stock outstanding will be paid out to stockholders on May 5.