'Sanctions could slash Russia's Baltic oil exports by 20pc'
Business
Urals exports from the Baltic Sea ports will probably fall to around 5 million tonnes this month.
MOSCOW (Reuters) - Exports of Russia s flagship Urals crude blend from Baltic Sea ports may fall by up to a fifth in December, after a Western price cap and an EU embargo on Russian oil took effect, according to traders and Reuters calculations.
Traders said Russia has been unable to fully redirect Urals exports from Europe to other markets, notably India and China, and it had struggled to find enough suitable vessels.
According to traders data and calculations made by Reuters, Urals exports from the Baltic Sea ports will probably fall to around 5 million tonnes this month from 6 million tonnes in November. Some estimates are as low as 4.7 million tonnes.
The European Union, G7 nations and Australia introduced a $60 per barrel price cap on Russian oil, effective from Dec. 5, on top of the European Union s embargo on imports of Russian crude by sea and similar pledges by the United States, Canada, Japan and Britain.
The cap allows non-EU countries to import seaborne Russian crude oil, but prohibits shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for under $60.
In December, Urals crude has been sold at deeper discounts, and dominant buyer India has bought barrels at well below the $60 price cap.
The impact of the sanctions on Urals loadings from Russia s Baltic ports has been aggravated by a shortage of non-western tonnage, a weak export economy and moderate demand for the grade in Asia, especially in China.
Pipeline monopoly Transneft failed to fill some of the available loading slots because of a lack of bids from producers, traders said. Some other slots were postponed or cancelled.
