Add to favorite
 
123
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS


Bloomberg: Demand for Russian Oil is Growing
September 29, 2019 15:15


(Source: https://cdn.teknoblog.ru/wp-content/uploads/2014/06/Kachalka-Oil-Neft.jpg)

US sanctions against Iran and Venezuela have resulted in an increase in demand for Russian crude oil, as Bloomberg stated.

The agency has calculated that this has increased the revenue of exporters from Russia by almost $ 1 billion over the past eight months.

Russian oil companies received at least $ 905 million of additional revenue between November 2018 and July 2019, according to Bloomberg. Such data was demonstrated by the agency’s calculations of the spread difference (the difference between selling and buying prices) for Urals oil brand in relation to Brent brand for this period in comparison with the five-year average.

One of the reasons for this growth, according to Bloomberg, is the US sanctions against two major oil exporters - Venezuela and Iran. Another possible reason is a decrease in the production of raw materials by the members of the Organization of Petroleum Exporting Countries and their partners.

As a result, Russian Urals oil began to be regularly traded at a premium in relation to Brent, as Bloomberg writes. “There is a shortage of heavier and more crude oil on the market due to the sanctions against Iran and Venezuela”, as the agency quotes the JBC Energy analyst Konstantsa Rangelova. She noted that Urals was trading at a record high in the Mediterranean region. In the near future, the spread for Russian oil may be reduced due to the end of the summer car season and the beginning of autumn maintenance at European oil refineries, Rangelova thinks.

Although heavy oil is considered to be of lower quality, some refineries are designed to work precisely with this raw material, and reformatting them is expensive, as Bloomberg notes. Exactly such fuel was exported by Venezuela and Iran. The United States limited the purchases of Iranian oil in November 2018 with exceptions for a number of countries that were not extended by Washington in May 2019.

The sanctions against the PDVSA Venezuelan state oil company were imposed by USA in January. Urals typically traded at a discount in relation to Brent: during the past five years, the difference has been around $ 1 in the Mediterranean region and $ 1.63 in Northwestern Europe, as the representative of S&P Global Platts confirmed to Bloomberg. The difference began to decrease in November 2018, since then the premium on Urals has reached $ 1 in the Mediterranean region and $ 0.86 in Europe.

 
 

 




Author: Anna Dorozhkina

Tags: Russia International Russian oil Russian economy   

Next Previous

You might also find interesting:

Rosneft Deutscland Develops a Strategy of Independent Marketing in Germany UBS Fulfills the Law On Controlled Foreign Companies (CFC) Russia May Be Accepted Back To the G8 Finance Focus: Why Has Central Bank Kept Policy Rate Unchanged? Shadow Retail Trade in Moscow









Comment on our site


RSS   twitter      submit



TAGS:
Russian Academy of Sciences  Exhibitions in Moscow  Smoking in Russia  Russian science  Russian economy  Peter and Paul Fortress  St. Petersburg Parks   Russian scientists  Architecture Monuments  Russian tourism  Tourist Information Center  Taiga  Art Exhibitions  Snegurochka  Visa   Russian Embroidery  Russian businessmen  Ukok Plateau   Natella Toidze  Alexei Ivanov  Russian business  St. Petersburg  Maria Galina  Buryatia  odd news  Cancer  Mercedes-Benz Fashion Week Russia  Theatre Festivals  Alexander Lebedev  Victory Day  Peterhof  Rich Mnisi  Krasnodar Territory  Russian beaches  Theater Olympics  Ganina Yama  Fan ID  Natalia Vodianova  Vandals  Anna Miss Remizova  Maxhosa by Laduma  Mercedes-Benz Fashion Week   terrorism  Moscow  Russian airlines  Nude  Russian Cinema  Garik Sukachev  Spartak Moscow  Sokolniki 


Travel Blogs
Top Traveling Sites