Asian countries stock up on Russian crude keeping exports flowing in spite of western sanctions, thereby squeezing their intended effect, Rystad estimates.
Photo: Tatiana Meel
Western sanctions on Russian crude fail in delivering the expected devastating blow to the warmongering country’s economy.
So reads the brief conclusion from consultancy Rystad Energy, outlining that namely Asian countries take advantage of low prices on Russian crude in filling up their inventories.
”The latest weekly data points towards a strong increase in Russian seaborne crude exports, mainly from ports in the country’s west,” writes Rystad pointing to India’s increased imports from 0.95 million barrels per day (bpd) in November to 1.2 million bpd in December.
Russian blend crude currently sells in the range of USD 40-45 a barrel, which is a USD 40 dip compared to the European Brent price.
”The main conclusion that can already be formulated after 1.5 months of the European Union (EU) embargo and G7 price cap on Russian crude is that the effect of sanctions on the volume of Russian crude oil exports has not been as devastating as some industry players predicted,” writes Rystad Energy.
India and China remain the biggest buyers of Russian crude, but the consultancy stresses that destinations for a large part of sanctioned crude flows remain unidentified.
The EU, US and G7 member nations have imposed widespread sanctions along with a price cap on Russian oil to prevent the country in using oil earnings to fund its war on Ukraine.
EU countries have banned Russian seaborne crude imports from Dec. 5, 2022. and starting Feb. 5, a complete ban on all Russian oil products will be instated.
English edit: Simon Øst Vejbæk
