Mideast would struggle to cover Russian oil loss

Mideast would struggle to cover Russian oil loss

London, 25 January (Argus) — Saudi Arabia, Kuwait and Iraq would struggle to cover the shortfall in crude supply created by a blanket ban on Russian energy exports as they have already allocated their annual term supplies, according to sources close to the matter.

Although trading sources say the ensuing European energy crisis will probably steer officials in Brussels and Washington away from strict energy sector sanctions in the event of a Russian invasion of Ukraine, EU foreign ministers and the White House have been deliberating potential retaliatory measures against Moscow should it proceed with military action, and the US has hinted that Russian oil and gas could be included.

A blanket ban on Russian oil exports would severely curtail the availability of sour crude at a time when similar-quality supplies from Iran and Venezuela are also subject to sanctions. Russia exports up to 1.5mn b/d of Urals crude from Baltic Sea ports, another 400,000 b/d from the Black Sea terminal at Novorossiysk and up to 800,000 b/d by pipeline to central and eastern Europe.