About 650,000 barrels per day of Russian oil to be ‘swapped’ says Woodmac

About 650,000 barrels per day of Russian oil to be ‘swapped’ says Woodmac

About 650,000 barrels per day (b/d) of Russian crude oil are to be relocated from advanced economies, and the solution could be ‘crude swapping’, says Wood Mackenzie. Significantly, Russia’s key market China not shoring up large volumes yet.

Following US sanctions on Russian crude oil, European companies have also begun ‘self-sanctioning’ with up to 1.2 million b/d of Urals crude displaced as a result. Similar actions in Japan and South Korea resulted in sharp declines in ESPO weekly export volumes in the week ending March 25th, but export volumes recovered for the week ending April 1st.

Managing consultant Alex Sun said: “Global crude oil trade will rebalance by ‘crude swapping’ between ‘self-sanctioning’ advanced economies and developing markets.