US raw exports are gaining momentum in Europe, as Ukraine also turns to an important consumer of US fuels at the expense of Russian supplies amid rising US political pressure on Moscow and problems with Russian polluted oil.
The port said that Ukraine this month received its first barrels from the United States, according to Eikon’s refining fines, after Wisdom Venture venture has fired 80,000 tonnes of unprocessed copper in Odessa on 6 July for the Kremenchug refinery.
Oil was sold by BP to Ukrtatnafta, sources said, adding Ukrtatnafta will receive similar amounts of US oil around 24 July and more likely to buy in August.
A Ukrainian petroleum trader said that “Ukrainian oil industry will rise from the ashes with its new president so it is a notable new market for the United States, although the price matters.”
The Ukrainian oil sector, previously run by Russian companies, has fought since the geopolitical tensions between escalating countries in 2013-2014.
Since then, most of the country’s refineries have remained closed and the only oil supplied to Odessa is Azeri Light, sourced from SOCAR of Azerbaijan. Since January 2019 it has supplied 320,000 tons, the Eikon refinish displays the flow data.
Traders said US oil has not yet become a common feed for European buyers, who complain about volumes and qualities, but recent market changes have shown that American barrels can be a viable alternative.
The crisis that broke out at the end of April on Russian polluted oil delivered through the Druzhba pipeline prompted buyers to seek alternatives.
Matthew Holland on Energy Aspects said, “Refinals relying only on Druzhba supplies were forced to try alternatives and could easily make these new barrels of their base, given that the issue of pollution has lasted so much time to settle “.
As a result, US supplies to Europe have steadily increased since May and have remained above 2.5 million tonnes per month.
For example, Poland, which had not imported US fuel since June 2018, bought three WTI cargoes this year – a delivery to Gdansk in May and two in July, data flow figures.
Germany’s Wilhelmshaven imported a cargo in June and will take two more in July. According to traders, some of the cargo has been set for the Gelsenkirchen refinery of Ruhr Oel.
In the Mediterranean, a typical buyer of crude urals in Italy, increased US imports to a monthly record of nearly 700,000 tonnes in June, the Eikon Refinishing Data showed. Traders said buyers were seeking to replace Ural volumes for Italian and German refineries, which accepted transit volumes through Triest.
Active buyers of Ural Greece and Croatia have also received some US oil loads. Approximately 215,000 tonnes were imported to Greece in May-June, the data shows, while a condensate load Eagle Ford was fired at Croatia’s Omisalj in May.
“Russia is a major oil supplier, but we want to have a choice. In recent years, Russian supplies have been regularly linked to some kind of risk – sanctions, pollution, etc., but is always available today and in the country free in time, “a Mediterranean merchant said.
RESEARCH OF A BANKING
Russia has sought ways to add raw bridges to the North Sea basket to play a role in the oil price formula in the world, but so far, such efforts have failed.
US powder is a new product in the market and some pricing agencies are considering adding it to the basket. Among the recent moves is the start of the trading of crude oil grades in the US in the Platts window along with the North Sea grades.
S & P Platts did not add WTI for Brent’s daily calculations.
The Argus Media Price Agency added WTI to the United States with new crude
North Sea Date Assessment from February 15th./Investing.com