BAKU, Azerbaijan, January 19. Russia's share in the EU's crude imports may fall to just 5 percent, compared to the level of 27-30 percent before the war in Ukraine, Trend reports via the latest oil market update from the International Energy Agency (IEA).
"Russian oil exports fell 200,000 b/d m-o-m in December as a 270,000 b/d reduction in crude shipments was partly offset by an 80,000 b/d increase in product volumes," the report said.
Since the EU embargo on Russia's oil entering into force on December 5, 2022, the supplies to Europe decreased by only 140,000 b/d, as a 240,000 b/d fall in seaborne shipments was partly offset by a 100,000 b/d increase in Druzhba pipeline volumes, the IEA noted.
"In December, most of the EU-destined seaborne shipments, 160,000 b/d out of 230,000 b/d went to Bulgaria, which has a derogation from the import ban. Italy and Netherlands split the remaining volume, with a single cargo destined for Italy and two to the Netherlands," the report said.
Meanwhile, Russian diesel exports surged to a multi-year high of 1.2 mb/d, of which 720,000 b/d was destined for the EU. Record discounts for Russian benchmark Urals grade saw Russian revenues slip by $3 billion month-on-month to $12.6 billion.
"From January, only Bulgaria can continue seaborne crude imports
from Russia. Germany has said it
will fully stop pipeline deliveries Russia, with an agreement to
import modest volumes from Kazakhstan.
This means that Druzhba volumes are set to fall by 330,000 b/d, to
around 360,000 b/d. Thus, Russia’s share in EU crude oil imports
could fall to just 5 percent, from pre-war levels of 27-30
percent," the report concluded.