Oil supplies from Russia may fall by 20%

Exports of Russia's main Urals crude oil from Baltic Sea ports may drop by 20% in December. This is related to the entry into force of marginal oil prices and the European Union embargo on supplies from Russia.

According to traders, Russia has not been able to fully redirect Urals supplies from Europe to other markets, such as India and China, and has been desperate to find the optimal number of ships.

Traders’ data and calculations by Reuters suggest that deliveries of Urals from the Baltic Sea ports this month are likely to drop to around 5 million tons, and according to some estimates, to 4.7 million tons. In November, this figure was 6 million tons.

On December 5, price caps for oil from Russia at $60 per barrel set by the EU, G7 countries and Australia came into effect, further to the EU embargo on imports of Russian oil by sea.