Russia Looks to Lure Asian Buyers with Higher Quality Crude

https://extractives-baraza.com/wp-content/uploads/2022/06/RUSSIA.jpg

(Image source: iStock)

By Michael Kern

Russia has improved the quality of its flagship Urals crude grade in the past two months, making it lighter and sweeter, and even more attractive for buyers in Asia who aren’t shunning Russian oil, Reuters reported on Monday, citing data obtained by industry sources.

Urals was a key grade for export from Russia’s ports on the Baltic Sea and the Black Sea, and a lot of the volumes were going to Europe before the Russian invasion of Ukraine.

Now Russia’s oil exports are geared toward China and India, as Western buyers are shinning and sanctioning Russian crude oil and refined products, ahead of an EU embargo on seaborne Russian oil imports, set to kick in within eight months.

According to the data seen by Reuters, Russia’s Urals has become slightly sweeter—with lower sulfur content—and lighter, with higher API gravity numbers, over the past two months.

Lower Russian demand for low-sulfur crude and reduced operations at southern Russian refineries relatively close to Ukraine could be two of the reasons for sweeter and lighter Urals being shipped for Asian exports from Russia now, according to Reuters sources.

Moreover, some fields producing heavier and higher-sulfur oil have curbed production following the sanctions on Russia, which could have also contributed to the sweeter and lighter Urals export grade, a trader told Reuters.

Improved Urals quality could be a further incentive for China and India to buy Russian oil, on top of the steep discount at which the Russian grade is being offered. As of June 23, the price of Urals was at a $35-a-barrel discount to the international benchmark, Brent.

Meanwhile, Russia is shipping increased volumes of its crude to China and India as the West shuns, bans, and sanctions Russian oil and products.

Just a few months ago, India was a small and insignificant buyer of Russian oil. Following the Russian invasion of Ukraine, the steep discounts have attracted many Indian buyers.

Since April, India’s imports of crude oil from Russia have jumped by more than 50 times, to the point of representing 10 percent of all Indian imports, a senior government official told Business Standard last week.

Source: Oilprice.com

Extractives Baraza

WHAT'S TRENDINGTWITTER FEED
@ExtraBaraza - 22 hours

📢 Don't miss out on the advanced level multi-stakeholder course Extractives & Governance Programm…

@ExtraBaraza - 4 days

📢 Are you a professional working in the , gas, & energy sectors in Anglophone Africa? Send your appli…

@ExtraBaraza - 7 days

📢 Have you submitted your application? Be part of the advanced level multi-stakeholder course ' Extractive…

@ExtraBaraza - 1 week

Mining Industry Sees Value in Growing Local Processing Capacity. More details: #Rwanda…

@ExtraBaraza - 1 week

Montero Lodges C$90m Claim with World Bank After Tanzania Expropriates Rare Earths Project. More details:…

JOIN OUR EVER GROWING NETWORKSUBSCRIBE TODAY

    GET IN TOUCHFOLLOW US
    MOVE AROUND WITH EASEQUICK LINKS
    WHAT'S TRENDINGTWITTER FEED
    @ExtraBaraza - 22 hours

    📢 Don't miss out on the advanced level multi-stakeholder course Extractives & Governance Programm…

    @ExtraBaraza - 4 days

    📢 Are you a professional working in the , gas, & energy sectors in Anglophone Africa? Send your appli…

    @ExtraBaraza - 7 days

    📢 Have you submitted your application? Be part of the advanced level multi-stakeholder course ' Extractive…

    @ExtraBaraza - 1 week

    Mining Industry Sees Value in Growing Local Processing Capacity. More details: #Rwanda…

    @ExtraBaraza - 1 week

    Montero Lodges C$90m Claim with World Bank After Tanzania Expropriates Rare Earths Project. More details:…

    JOIN OUR EVER GROWING NETWORKSUBSCRIBE TODAY

      GET IN TOUCHFOLLOW US

      Copyright © 2021 Extractives Baraza. All Rights Reserved.

      Copyright © 2021 Extractives Baraza. All Rights Reserved.