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.