Russia Seeks New Fuel Markets in Africa and Middle East as Europe Pulls Away

MOSCOW, June 23 (Reuters) – Russia is rising gasoline and naphtha provides to Africa and the Center East because it struggles to promote gas in Europe, whereas Asia is already receiving bigger volumes of Russian crude, Refinitiv Eikon information confirmed and sources stated. .

The event is prone to improve competitors for Asian clients between Russia and different main gas exporters, Saudi Arabia and america, that are Asia’s high three suppliers.

The European Union has slowly lower Russian crude oil and gas imports since March and agreed to a full embargo set to take impact on the finish of 2022. Learn Extra

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Asian consumers have stepped in to quickly improve purchases of Russian crude, though Asia shouldn’t be a pure marketplace for Russian gas as a result of it refines extra oil than it wants and is a internet exporter of gas.

That makes discovering new shops like Africa and the Center East paramount for Russia to guard its international market share and keep away from a deeper drop in oil exports and manufacturing.

β€œAfrica and the Center East seem like the primary choices for suppliers of Russian oil merchandise, so we count on extra shipments there within the second half of the 12 months because the EU embargo attracts nearer,” a dealer concerned within the commerce instructed Reuters. commerce in Russian petroleum merchandise.

Russia exported greater than 2.5 million barrels per day (bpd) of crude and a few 2 million bpd of gas to Europe earlier than the sanctions on the Russian monetary sector, which have made commerce very troublesome.

Russian oil corporations have just lately elevated provides of gasoline and naphtha to Africa and the Center East from the Baltic states, merchants stated. Earlier than the sanctions, many of the Russian provide to the areas got here from Black Sea ports.

Based on Refinitiv information, no less than 5 shipments containing some 230,000 tonnes of gasoline and naphtha had been delivered between Could and June from the Baltic port of Ust-Luga to Oman and the UAE oil hub of Fujairah.

In complete, provides of naphtha and gasoline from Russian ports to Oman and the United Arab Emirates totaled virtually 550,000 tonnes this 12 months in comparison with zero in all of 2021, the info confirmed.

Nigeria and Morocco have been the highest locations in Africa for Russian gasoline and naphtha in latest months, Refinitiv Eikon information confirmed and merchants stated, whereas quite a few cargoes had been additionally provided to Senegal, Sudan, CΓ΄te d’Ivoire and Togo.

Total month-to-month provide of Russian gasoline and naphtha to the area was about 200,000 tonnes for the previous few months, together with volumes shipped from storage at ports in Latvia and Estonia, Refinitiv Eikon information confirmed.

Russian diesel shipments to African international locations have reached 1m tonnes for the reason that begin of the 12 months, up from 0.8m tonnes in January-June 2021, with Senegal and Togo high locations, Refinitiv information and calculations confirmed. from Reuters.

In Could, Russian gas oil arrivals on the UAE oil hub of Fujairah additionally elevated sharply. learn extra

Regardless of increased delivery prices, supplying Russian oil merchandise to Africa and the Center East helps buying and selling corporations protect margins, as choices to resell oil merchandise in Europe have been restricted as a consequence of sanctions, retailers stated.

“Sohar (in Oman) and Fujairah (within the UAE) might supply storage and mixing capacities for all these barrels, whereas European ports have began to reject Russian oil merchandise,” stated a market supply concerned within the commerce. of Russian oil merchandise.


The change in Russia’s export markets has resulted in an unprecedented disparity in Russia’s home market. Summer time diesel is presently buying and selling at costs 30% to 40% increased than gasoline, in keeping with Reuters information. Gasoline is often costlier than diesel.

Russia beforehand exported gasoline and naphtha to European buying and selling hubs however needed to look to Africa and the Center East amid weak demand in Europe, merchants stated.

Consequently, the home costs of those merchandise in Russia have collapsed as a result of plentiful provide.

Russian gasoline traded $250-300 per ton under the unapproved European product, which was most just lately valued at round $1,330 per ton on an FOB foundation.

Diesel cargoes had been discounted a lot much less, about $40-50 a tonne under unapproved European product, as a result of demand continues to be robust, merchants stated.

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Reuters info. Edited by Jane Merriman

Our requirements: The Thomson Reuters Belief Ideas.

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