Five Ways The Russia/Ukraine War Is Changing Oil Markets

Five Ways The Russia/Ukraine War Is Changing Oil Markets

Share to Linkedin The Russia/Ukraine conflict has penetrated deep into global crude and product markets. Producers, traders, shippers, refiners and even consumers are all having to adapt to shifting crude and product flows – and pricing. Our refining analysts Alan Gelder, Mark Williams and Gerrit Venter guided me through what's happening and how they think things will play out. First, very little Russian crude and product volumes have been kept from the market. Oil, like gas and coal, is exempted from official sanctions, though the US, Japan and South Korea have imposed import bans. Many countries and companies are aiming to reduce their dependence on Russian crude and products by the end of 2022. Around 1. 0 million b/d out of total Russian crude exports of 4. 6 million b/d is now self-sanctioned. These are mostly Urals barrels destined for European refineries. Volumes will increase to 1. 2 million b/d when TotalEnergies' sources alternative feedstock for its Leuna refinery in Germany, currently served by a dedicated pipeline from Russia. Separately, some of the 1. 0 million b/d of diesel produced in Russian refineries and exported (again, mainly headed for European markets) is also self-sanctioned. Traders are encountering difficulties dealing in