EU Struggling to Strangle Russian Oil Exports

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The European Union is struggling in its bid to impose an embargo on Russian oil imports, as a group of member states led by Hungary resist a move they say will leave them with no alternative supplies and wreak havoc on their economies. But other members, most notably Germany, the EU’s largest importer of Russian oil, are already stepping up their intake from other sources, including the US and Mideast Gulf, with a view to eliminating Russian barrels altogether by year's end. Russian crude supplies to the EU, which averaged more than 1.5 million barrels per day last year — including 850,000 b/d pumped via the Druzhba pipeline to Central Europe — have shrunk at least 10% since the invasion of Ukraine on Feb. 24 and are set to drop further as Russia’s traditional customers look elsewhere. Urals shipments from the Baltic Sea are still going into Northwest Europe, especially the Dutch hub of Rotterdam, and the Mediterranean, but more volumes are now heading to India. Russian exports of light and heavy oil products to the EU have also declined, raising fears of much higher diesel prices later in the year at a time when inflation across the EU is growing.

Sanctions, Oil Term Contracts, Oil Supply, Oil Products, Oil Spot Markets, Oil Pipelines
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