RT.com
03 Feb 2023, 18:45 GMT+10
The restrictions could force Moscow to cut crude production, according to experts cited by Reuters
The EU ban on imports of Russian petroleum products could disrupt global trade flows after the measure enters force on February 5, Reuters reported on Thursday, citing analysts.
The bloc's sanctions targeting refined oil products, including diesel and jet fuel, may ultimately impact overall supply due to the risk that the restrictions could force Russia to curb production and refining.
"Barrels will get out and find a market, logistical challenge but not a supply challenge," senior research associate Ian Moore at global brokerage firm Bernstein told the agency.
However, finding alternative buyers for refined products is expected to become a bigger issue for Russia. The nation's discounted volumes of crude oil are currently in strong demand in India and China, two countries that are major exporters of fuel products and have vast refining capacities of their own.
"While the ban would leave Russia with more crude to export, there may not be enough destinations to export the surplus to, and hence Russia may need to cut production by 5%-10%," DBS Bank energy analyst Pei Hwa Ho said, as cited by the news agency.
Last month, Russia reportedly boosted diesel supplies to African and Mediterranean ports in an effort to divert supplies. In December, Russian Deputy Prime Minister Aleksandr Novak said the supplies would be redirected to Asia, Africa and Latin America, adding that Moscow would rather cut oil production than agree to any price caps.
Brussels has proposed a price cap of $100 a barrel on diesel and a $45-per-barrel ceiling on discounted products such as fuel oil. The measures, approved by the G7, the European Commission, and Australia, have yet to be backed by all EU member states, although a deal is expected to be reached on Friday.
The cap follows a similar measure Western countries implemented on December 5 barring the sale, insurance, and transport of Russian seaborne crude unless purchased below a $60 price cap.
For now, shipments of refined products from Russia remain somewhat abundant in Europe. The continent is heavily reliant on diesel imports from the sanctioned country, with traders trying to stock up ahead of the restrictions.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Travel Trade news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Travel Trade.
More InformationNEW YORK CITY, New York: Bitcoin surged to a new all-time high this week, buoyed by growing institutional interest and a wave of pro-crypto...
SHENZHEN, China: As global chip competition intensifies, Huawei Technologies is exploring new markets in the Middle East and Southeast...
LONDON/NEW YORK CITY: American grocery bills may be headed higher as coffee and orange juice prices face upward pressure from new tariffs...
BATTLE CREEK, Michigan: In a major consolidation of iconic food brands, WK Kellogg has agreed to be acquired by the owner of Ferrero...
WASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...
WASHINGTON, D.C.: Travelers at U.S. airports will no longer need to remove their shoes during security screenings, Department of Homeland...
New Delhi [India], July 15 (ANI): A SpiceJet flight from Delhi to Mumbai on Monday handed over two passengers to CISF for their unruly...
By Shafali Nigam New Delhi [India], July 14 (ANI): India's civil aviation regulator, Directorate General of Civil Aviation (DGCA)...
Dubai [UAE], July 14 (ANI): Madhya Pradesh Chief Minister Mohan Yadav, currently on an official visit to the UAE as part of the MP...
Dubai [UAE], July 14 (ANI): Madhya Pradesh Chief Minister Dr Mohan Yadav met industry leaders in the UAE's trade sector during his...
Mumbai (Maharashtra) [India], July 14 (ANI): A parked Akasa Air aircraft was struck by a cargo truck operated by a third-party ground...