BAKU, Azerbaijan, Aug.10. The situation in Ukraine has resulted in shifting trade patterns, leaving Europe to find substitutes for Russia’s oil, Trend reports with reference to the US Energy Information Administration (EIA).
“This change has driven up the price of Brent contracts to a level high enough to reduce Asia’s imports of Brent crude oil and to retain more oil in Europe. The Brent-WTI spread has also increased enough to attract more imports of crude oil from the United States into Europe. From March through July, the Brent-WTI spread averaged $6.05/b, an almost $2.50/b increase from the first two months of the year,” reads the latest EIA report.
EIA forecasts the Brent-WTI spread will average $6/b in 2023, up $2/b from the July STEO.
“This high spread will keep exports from Europe to Asia subdued and encourage higher imports from the United States, both of which will likely be necessary as the EU reduces crude oil imports from Russia by 90 percent by the end of the year. Although supply disruptions have kept crude oil prices around $100/b, crude oil prices have come down slightly in July as concerns of slower economic growth or a recession become more prevalent. These concerns are reflected in the University of Michigan’s survey of consumer sentiment, which recorded its lowest reading on record in June, with data going back to November 1952. Likewise, consumer sentiment in the Euro Area has decreased, reaching record lows in July,” the report says.
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