Moscow — Shipments of Russian Urals oil to EU countries by sea are expected to fall to below a quarter of the total in November ahead of an embargo by the bloc, Refinitiv data showed.
European Union destinations, including Italy and the Netherlands, accounted for about 22% of total shipments of Russian Urals oil in November, the data showed, excluding volumes from Kazakhstan shipped via Russian ports, which is sold as a different oil grade.
Almost all of the cargoes were supplied to refineries owned by Russian oil companies, the data showed on Tuesday.
More than 75% of Urals exports by sea were made to countries outside the EU in November, with India the main importer of the Russian grade, receiving about 40% of the total.
Turkey remained the main destination for the grade in the Mediterranean, with about 15% of Urals oil in November, the data showed, while Egypt was the third largest buyer outside the EU.
The Russian oil, which is delivered to Egypt’s Port Said, is either stored or later reloaded to other tankers, traders said.
Shipments of Urals to China in November are forecast to reach 300,000-500,000 tonnes, but traders expect shipments there to remain quite low due to concerns about the price cap.
Chinese buyers were also more focused on Russia’s Far East ESPO Blend oil grade since the cost of delivery is much lower.
“When shipping Urals to China, logistics remain the main issue,” a trader in the Russian oil market said.
European refiners have become more willing to buy volumes of KEBCO oil, which is exported via Russian ports but originates from Kazakhstan, traders said.
For example, Romania, where Kazakhstan’s Kazmunaigaz owns a refinery, in November purchased only KEBCO, while refiners in Italy and Turkey also increased KEBCO buying, Refinitiv data showed and traders said.
(Reporting by Reuters; Editing by Alexander Smith) – Reuters
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