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Russia Has Lost Over 90% Of Its European Oil Market Share

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Russia has already lost more than 90% of its former top European market, Northern Europe, as it fell below 100,000 bpd in recent weeks from over 1.2 million bpd before Russia’s invasion of Ukraine. Bloomberg’s Estimate.

The EU embargo on seaborne imports of Russian crude oil and the price cap mechanism attached to Russian crude oil is due to come into force on 5 December.

Bloomberg estimates that Russia has already lost more than 90% of its top market heading into February.

About 75% of the Russian crude currently loaded into Russia’s Baltic ports is destined for Asia, prompting Indian and Chinese buyers, especially early this year, to buy Russian cargo at deep discounts. No hesitation.

With only two weeks left until the EU embargo and the EU-UK-G7 price ceiling, it is imperative that buyers in India, for example, secure the loading of their supplies by 5 December and deliver them at their destination port by 5 December. There are signs of a race to unload by. No longer subject to embargoes and price caps on January 19th.

However, Indian and Chinese buyers cautious to buy Russian crude loading after Dec 5th. We are waiting for clarity on how the price cap will be applied and whether it will affect buyers of Russian oil once the sanctions are in place.

The EU embargo on Russian oil huge uncertainty The International Energy Agency (IEA) said in its monthly oil market report last week that it will impact global oil and product markets in just a few weeks.

While there are signs that oil demand growth is slowing, “the impending EU embargo on Russian crude oil and petroleum product imports and the ban on maritime services will put pressure on the world’s oil balance, especially the already very tight one.” It will put further pressure on the existing diesel market,” said the IEA. Said.

“Although the proposed oil price cap may help ease tensions, myriad uncertainties and logistical challenges remain,” the agency said.

By Josh Owens of Oilprice.com

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