April 2022
European importers of Russian crude oil face big challenges if they want to continue buying Urals crude or refined products. A growing number of European companies across the energy and shipping sectors are making statements of intent to reduce or halt exposure to Russian oil and/or shipping. But in doing so, what are the substitutes?
From the perspective of the European crude market, the substitution of Russian crude cargoes is already underway. Russian Urals the flagship grade for exports, have dropped sharply in value as limited interest from European buyers has driven the grade’s discount to North Sea Brent to record levels.  With European buyers shying away from Urals, there are positives and negatives for some key alternative crude grades that could see or are already seeing a boost in demand in the coming months.     Crude Grade Producers Crude oil comes in hundreds of different grades. These grades are valued differently by refiners based on their crude qualities.