Thursday, September 28, 2023
HomeHeadlinesRussian Oil Companies Ramp Up May Exports to Meet Asian Demand


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Russian Oil Companies Ramp Up May Exports to Meet Asian Demand

Russia is expected to increase seaborne oil exports from its western ports this month to a four-year high to meet Asian demand for low-priced oil, two sources familiar with the loading plans from the ports said.

Weaker global prices mean Russian oil trades below $60 per barrel, the price cap level imposed by Western countries, making it more attractive to Asian buyers as they have fewer issues with banks and compliance.

Oil exports from Russia’s main western outlets, Primorsk, Ust-Luga and Novorossiisk, will reach a combined 2.42 million barrels per day (bpd) this month, slightly up from 2.38 million bpd last month, according to Reuters calculations based on data provided by the sources.

May exports from the ports will be almost 2% higher than in April and the highest since 2019, Reuters data showed.

Oil loadings from Primorsk and Ust-Luga will reach 7.5 million tonnes, including Urals and Kazakhstan’s transit sold as KEBCO oil grade, up from 7.2 million tonnes in April.

G7 countries imposed a price cap to try to curb Moscow’s revenues, which took effect on Dec. 5.

Under the cap, Russian barrels sold below $60 per barrel on an FOB basis, which does not include freight and insurance, in the port of loading can be shipped and insured by Western companies, while volumes sold above the cap are banned from the services.

Apart from weaker oil prices that are facilitating trade, more oil is available for export as oil refineries in Russia are undergoing seasonal maintenance in May, which reduces domestic demand.

Russian refineries are expected to increase run rates in June as they emerge from maintenance and volumes of crude available for export are likely to decrease.

For May, the high export levels have driven up freight rates, traders added, increasing costs for market players.

Prices on spot markets are also rising, spurred by Asian enthusiasm to buy.

The cost of Urals oil shipments from Baltic ports to India rose to $7.7-7.8 million from $7.5-7.6 million a week ago, the sources said.

Last week, the discount of Urals narrowed to $10-$12 a barrel to dated Brent on a delivered ex-ship (DES) basis in Indian ports, from minus $13 a barrel for April loading cargoes, according to the three traders.


Related Posts


Finance & Economy
Shipping News

Star Bulk Announces the Repurchase of 10 Million of Its Common Shares

Star Bulk announced that it entered into a Repurchase Agreement (with OCM XL Holdings, LP, a limited partnership incorporated in the Cayman Islands, pursuant...

Trafigura announces executive leadership changes

Trafigura Group Pte Ltd. has announced an evolution of its executive team to further strengthen leadership and focus across its global activities during a...

Woori, HMM, KOBC to buy Polaris in prospective $448 mln deal – report

Polaris Shipping Co. is poised to sell its entire stake at around 600 billion won ($447.5 million) to Woori Private Equity Asset Management Co....

Pyxis Tankers Announces Closing of Ultramax JV Investment

Pyxis Tankers, an international shipping company, reported that on September 14, 2023, the Company closed on its previously announced newly formed drybulk joint venture...

Korea’s STX denies rumor that it is backed by Chinese fund

South Korean general trading company STX Corp. has said its largest shareholder is a local investment firm, while refuting the false reports appearing through...

Baltic index scales 11-month peak on strong capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index scales over 9-month high on capesize surge

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index rises to over 4-month high on stronger capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Houston-Japan VLGC freight rates reach multi-year high

VLGC freight rates from Houston to Chiba, Japan, reached $245/mt Sept. 21 for the...

Baltic index snaps 11-session rally as rates for larger vessels ease

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Drewry: Port Throughput Index Down 2.1% in July

The Global Container Port Throughput Index fell 2.1% MoM in July 2023, with the small rises recorded in Africa and Oceania having been insufficient...

Vopak: Agreement with Infracapital on sale of Rotterdam chemical terminals

Vopak announces that it has reached an agreement with Infracapital on the sale of its three chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven)...

Port Hedland Iron Ore Exports Edge Up 4% in August

Pilbara Ports Authority has delivered a total monthly throughput of 62.8 million tonnes (Mt) for August 2023, consistent with the August 2022 throughput. The Port...

Thessaloniki, Gdańsk ports to explore synergies

Thessaloniki Port Authority S.A is expanding its role as a port of international importance through a new cooperation with the Port of Gdańsk Authority...

Hapag-Lloyd CEO: Counteroffer for HHLA would not be in our interest

Hapag-Lloyd CEO Rolf Habben Jansen said on Thursday that it would not be in the container shipper’s interest to make an offer for HHLA...