Oil traders and buyers of Russian oil are preparing for trade restrictions on the export of raw materials in the event of Western sanctions against Russia due to the situation around Ukraine. This was reported on February 15 by Bloomberg, citing market participants.
According to the publication, traders are especially afraid that the restrictions will affect the ESPO varieties popular in Asia (Siberian oil supplied via the East Siberia-Pacific Ocean pipeline. – Ed.) and Sokol, which is produced in the Far East.
At the same time, market participants specified in an interview with Bloomberg that such an outcome of events is unlikely. However, they have already begun to consider the option of purchasing fuel for April in order to stock up on oil in case of sales suspensions.
Several other European traders said they are waiting and want to assess how the situation around Ukraine will affect the oil market.
As Bloomberg notes, citing S&P Global Platts data for Friday, February 11, the cost of Urals oil in Europe has fallen: the difference in price with Brent has reached a maximum since April 2020. The cost of oil in Asia remains at a high level so far: last week Sokol traded at the highest premium in two years against the background of a sharp increase in demand.
According to traders, oil from Saudi Arabia and the UAE will become a possible beneficiary in case of suspension of sales of Sokol and ESPO. Buyers are likely to ask for more supplies from Saudi Arabia, which are sold on a long-term basis, or turn to spot supplies from the UAE.
Earlier in the day, US President Joe Biden said that Washington and its partners had prepared export control sanctions in the event of a Russian “invasion” of Ukraine.
In addition, according to the American leader, the West, under such circumstances, will impose restrictions on Moscow in the field of export control and finance, as well as stop the implementation of the Nord Stream 2 project.
At the same time, the President of the United States noted that possible new sanctions could hit the United States and lead to an increase in fuel prices.
On February 13, US national security adviser Jake Sullivan said that the US was preparing sanctions lists of Russian economic elites that would be applied in the event of Russia’s “invasion” of Ukraine.
For several months now, Western media have been reporting information about an allegedly possible Russian invasion of Ukraine. Against this background, American lawmakers are calling for tougher sanctions against Moscow. Russia has repeatedly rejected reports of an allegedly possible invasion of Ukrainian territory.
So, on January 28, Russian Foreign Minister Sergey Lavrov said that Moscow was not going to start a war with Kiev, and Western countries and the United States were “hysterically” developing the theme of an allegedly impending attack, instead of inciting Ukraine to comply with the Minsk agreements.
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
