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Reuters
5 days ago
- Business
- Reuters
Trump's sanctions threat looms over Russian oil exports to China, India and Turkey
MOSCOW, July 15 (Reuters) - U.S. President Donald Trump threatened to hit buyers of Russian exports with sanctions unless Russia agrees a peace deal over the conflict in Ukraine, potentially complicating Moscow's oil sales to China, India and Turkey. According to the International Energy Agency, Russia's revenue from sales of crude oil and oil products in June declined by almost 14% from a year earlier to $13.57 billion. Russia's crude output, however, stayed broadly flat at 9.2 million barrels per day (bpd) last month and crude loadings were stable at 4.68 million bpd, the IEA said. Its exports of oil products dropped by 110,000 bpd to 2.55 million bpd. Russia exports Urals, Siberian Light and CPC Blend oil grades from its Western ports, such as Primorsk, Ust-Luga and Novorossiisk. It also loads smaller amounts of Arctic oil, ARCO and Novy port grades from its northern Murmansk port. Russia also exports the ESPO Blend from Kozmino port in the Far East, and the Sokol and Sakhalin Blend from Sakhalin island in the Pacific. Russian oilfields are also linked by pipelines to China and European countries. Currently only Hungary and Slovakia are still buying oil from Russia in Europe as part of an exception to European Union sanctions. Russia also provides its pipeline network for oil transit from Kazakhstan for further shipments to its ports and via the Druzhba oil pipeline to Germany. Russia also exports its oil to neighbour Belarus, which has two major refineries. China remains the largest buyer of Russian oil, mostly due to direct connections to Russian fields by pipeline: oil enters the country via the Skovorodino-Mohe and Kazakhstan's Atasu-Alashankou oil pipelines, and the rest is purchased by Chinese refineries by sea. China purchases about 2 million bpd of oil from Russia -mainly ESPO Blend, Sokol and Sakhalin Blend, as well as some Urals and Arctic oil, according to Chinese customs data. That's worth around $130 million each day, according to Reuters' calculations. The main buyers are energy companies CNPC, Sinopec and CNOOC as well as independent refineries. India is the second-largest oil buyer from Russia and the main buyer of its flagship Urals oil. India also purchases ESPO Blend oil, Sokol and Arctic grades from Russia. Its overall imports of Russian oil are at about 1.8 million bpd, according to ship tracking data from Kpler. Russian oil flows to most of India's refiners, including Reliance Industries, owner of the world's largest refinery. It also flows to private refiner Nayara Energy, in which Russia's Rosneft ( opens new tab holds a stake, as well as Indian Oil and ONGC. The third-largest importer of Russian oil, Turkey, ramped its purchases to an annual record in June of 400,000 bpd, according to LSEG. The increase in purchases of Russian oil by Turkey was due to a price decline of the Russian grade. Since April 1, Urals oil has been trading consistently below the price cap of $60 per barrel. Turkey's STAR refinery, controlled by Azerbaijan's SOCAR, is the main buyer of Russian oil in Turkey, while another major refiner, Tupras, also purchases Urals grade oil. Russia exports some 2.5 million bpd of fuel products, including low-sulphur diesel, gasoline, naphtha, fuel oil and others. Since 2023, Russia has also diverted its oil-product sales from Europe to Asia and Latin America. Moscow is a major diesel supplier to Brazil and Turkey, while it also supplies significant volumes of fuel to African countries including Ghana, Egypt, Morocco, Togo and Tunisia. Russian oil and products also flow to "friendly" states as Moscow calls the countries it continues to do business with. Among the buyers are Syria, which has recently started to buy Russian fuel and Arctic oil, as well as countries such as Pakistan, Cuba and Sri Lanka.
Business Recorder
02-07-2025
- Business
- Business Recorder
Oil rises on signs of strong demand
NEW YORK: Oil prices edged higher on Tuesday as investors took stock of positive demand indicators, while also treading cautiously ahead of an OPEC+ meeting to decide the group's August output policy. Brent crude was up 18 cents, or 0.3%, to $66.92 a barrel at 11:36 a.m. ET (1536 GMT), while US West Texas Intermediate crude was up 27 cents, or around 0.4%, to $65.38 a barrel. The gains were likely due to supportive data from a private-sector survey in China, which showed factory activity returned to expansion in June, said Randall Rothenberg, risk intelligence expert at US oil brokerage Liquidity Energy. Expectations that Saudi Arabia will raise its August crude oil prices for buyers in Asia to a four-month high, and firm premiums for Russian ESPO Blend crude oil, were also supporting the notion of robust demand, Rothenberg said. Meanwhile, oil's gains were kept in check by expectations that the OPEC+ group will raise its August crude oil output by an amount similar to the outsized hikes agreed in May, June, and July. Four OPEC+ sources told Reuters last week that the group plans to raise output by 411,000 bpd next month when it meets on July 6. 'All eyes will be on OPEC+'s decision over the weekend, when the group is expected to add another 411,000 bpd of production in an effort to gain more market share, primarily over the US shale producers,' StoneX energy analyst Alex Hodes wrote to clients. Besides gaining market share from US shale producers, which pumped oil at a record pace in April according to official data released on Monday, the group has also been trying to punish overproducing members. OPEC+ member Kazakhstan, one of world's 10 largest oil producers, raised oil production last month to match an all-time high, a source familiar with the data told Reuters on Tuesday. Saudi Arabia, the de facto leader of the OPEC+ group, raised its June crude oil exports to the fastest rate in a year, data from Kpler showed. 'These exports are flooding out even faster than the OPEC+ deal implies during the summer when peak domestic demand typically keeps oil supplies closer to home,' Hodes said. Investors are also watching trade negotiations ahead of US President Donald Trump's tariff deadline of July 9. US Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs despite good-faith negotiations as that deadline approaches, when tariff rates are scheduled to revert from a temporary 10% level to the ones Trump announced on April 2 and then suspended. The European Union wants immediate relief from tariffs in key sectors as part of any trade deal with the US due by the July 9 deadline, EU diplomats told Reuters.
New Straits Times
02-07-2025
- Business
- New Straits Times
Oil settles up on signs of strong demand, investors await OPEC+ decision
NEW YORK: Oil prices edged higher on Tuesday as investors took stock of positive demand indicators, while also treading cautiously ahead of an OPEC+ meeting to decide the group's August output policy. Brent crude settled up 37 cents, or 0.6 per cent, at US$67.11 a barrel, while US West Texas Intermediate crude settled 34 cents higher, or up around 0.5 per cent, at US$65.45 a barrel. The gains were likely due to supportive data from a private-sector survey in China, which showed factory activity returned to expansion in June, said Randall Rothenberg, a risk intelligence expert at US oil brokerage Liquidity Energy. Expectations that Saudi Arabia will raise its August crude oil prices for buyers in Asia to a four-month high, as well as firm premiums for Russian ESPO Blend crude oil, were also supporting the notion of robust demand, Rothenberg said. Oil's gains were kept in check by expectations that the OPEC+ group will boost its August crude oil output by an amount similar to the outsized hikes agreed in May, June, and July. Four OPEC+ sources told Reuters last week the group plans to raise output by 411,000 barrels per day next month when it meets on July 6. "All eyes will be on OPEC+'s decision over the weekend, when the group is expected to add another 411,000 bpd of production in an effort to gain more market share, primarily over the US shale producers," StoneX energy analyst Alex Hodes told clients. Besides gaining market share from US shale producers, which pumped oil at a record pace in April, according to official data released on Monday, the group has also been trying to punish overproducing members. OPEC+ member Kazakhstan, one of the world's 10 largest oil producers, raised oil production last month to match an all-time high, a source familiar with the data told Reuters on Tuesday. Saudi Arabia, the de facto leader of the OPEC+ group, raised its June crude oil exports to the fastest rate in a year, data from Kpler showed. "These exports are flooding out even faster than the OPEC+ deal implies during the summer, when peak domestic demand typically keeps oil supplies closer to home," Hodes said. In the US, crude oil inventories rose by 680,000 barrels in the past week, according to sources citing figures from the American Petroleum Institute. Official data from the Energy Information Administration is due Wednesday at 10.30 a.m. ET. Investors are also watching trade negotiations ahead of US President Donald Trump's tariff deadline of July 9. Trump on Tuesday said he is not thinking of extending the deadline. A trade deal with India was very close, Treasury Secretary Scott Bessent said on Tuesday. Trump also said the US will possibly have a deal with India, but he added that he doubts there will be a deal with Japan. Bessent also warned countries could be notified of sharply higher tariffs despite good-faith negotiations as the July 9 deadline approaches, when tariff rates are scheduled to revert from a temporary 10 per cent level to the ones Trump announced on April 2 and then suspended. The European Union wants immediate relief from tariffs in key sectors as part of any trade deal with the US, EU diplomats told Reuters.
Business Times
01-07-2025
- Business
- Business Times
Oil settles up on signs of strong demand, investors await Opec+ decision
[NEW YORK] Oil prices edged higher on Tuesday as investors took stock of positive demand indicators, while also treading cautiously ahead of an Opec+ meeting to decide the group's August output policy. Brent crude settled up 37 cents, or 0.6 per cent, at US$67.11 a barrel, while US West Texas Intermediate crude settled 34 cents higher, or up around 0.5 per cent, at US$65.45 a barrel. The gains were likely due to supportive data from a private-sector survey in China, which showed factory activity returned to expansion in June, said Randall Rothenberg, a risk intelligence expert at US oil brokerage Liquidity Energy. Expectations that Saudi Arabia will raise its August crude oil prices for buyers in Asia to a four-month high as well as firm premiums for Russian ESPO Blend crude oil were also supporting the notion of robust demand, Rothenberg said. Oil's gains were kept in check by expectations that the Opec+ group will boost its August crude oil output by an amount similar to the outsized hikes agreed in May, June and July. Four Opec+ sources told Reuters last week the group plans to raise output by 411,000 barrels per day next month when it meets on July 6. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'All eyes will be on Opec+'s decision over the weekend, when the group is expected to add another 411,000 bpd of production in an effort to gain more market share, primarily over the US shale producers,' StoneX energy analyst Alex Hodes told clients. Besides gaining market share from US shale producers, which pumped oil at a record pace in April, according to official data released on Monday, the group has also been trying to punish overproducing members. Opec+ member Kazakhstan, one of the world's 10 largest oil producers, raised oil production last month to match an all-time high, a source familiar with the data told Reuters on Tuesday. Saudi Arabia, the de facto leader of the Opec+ group, raised its June crude oil exports to the fastest rate in a year, data from Kpler showed. 'These exports are flooding out even faster than the Opec+ deal implies during the summer, when peak domestic demand typically keeps oil supplies closer to home,' Hodes said. In the US, crude oil inventories rose by 680,000 barrels in the past week, according to sources citing figures from the American Petroleum Institute. Official data from the Energy Information Administration is due Wednesday at 10.30 am ET. Investors are also watching trade negotiations ahead of US President Donald Trump's tariff deadline of July 9. Trump on Tuesday said he is not thinking of extending the deadline. A trade deal with India was very close, Treasury Secretary Scott Bessent said on Tuesday. Trump also said the US will possibly have a deal with India, but he added that he doubts there will be a deal with Japan. Bessent also warned countries could be notified of sharply higher tariffs despite good-faith negotiations as the July 9 deadline approaches, when tariff rates are scheduled to revert from a temporary 10 per cent level to the ones Trump announced on April 2 and then suspended. The European Union wants immediate relief from tariffs in key sectors as part of any trade deal with the US, EU diplomats told Reuters. REUTERS
Business Recorder
01-07-2025
- Business
- Business Recorder
Oil rises on signs of strong demand, investors await OPEC+ output decision
NEW YORK: Oil prices edged higher on Tuesday as investors took stock of positive demand indicators, while also treading cautiously ahead of an OPEC+ meeting to decide the group's August output policy. Brent crude was up 18 cents, or 0.3%, to $66.92 a barrel at 11:36 a.m. ET (1536 GMT), while U.S. West Texas Intermediate crude was up 27 cents, or around 0.4%, to $65.38 a barrel. The gains were likely due to supportive data from a private-sector survey in China, which showed factory activity returned to expansion in June, said Randall Rothenberg, risk intelligence expert at U.S. oil brokerage Liquidity Energy. Expectations that Saudi Arabia will raise its August crude oil prices for buyers in Asia to a four-month high, and firm premiums for Russian ESPO Blend crude oil, were also supporting the notion of robust demand, Rothenberg said. Meanwhile, oil's gains were kept in check by expectations that the OPEC+ group will raise its August crude oil output by an amount similar to the outsized hikes agreed in May, June, and July. Four OPEC+ sources told Reuters last week that the group plans to raise output by 411,000 bpd next month when it meets on July 6. 'All eyes will be on OPEC+'s decision over the weekend, when the group is expected to add another 411,000 bpd of production in an effort to gain more market share, primarily over the US shale producers,' StoneX energy analyst Alex Hodes wrote to clients.. Oil prices slip on easing Middle East risks Besides gaining market share from U.S. shale producers, which pumped oil at a record pace in April according to official data released on Monday, the group has also been trying to punish overproducing members. OPEC+ member Kazakhstan, one of world's 10 largest oil producers, raised oil production last month to match an all-time high, a source familiar with the data told Reuters on Tuesday. Saudi Arabia, the de facto leader of the OPEC+ group, raised its June crude oil exports to the fastest rate in a year, data from Kpler showed. 'These exports are flooding out even faster than the OPEC+ deal implies during the summer when peak domestic demand typically keeps oil supplies closer to home,' Hodes said. Investors are also watching trade negotiations ahead of U.S. President Donald Trump's tariff deadline of July 9. U.S. Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs despite good-faith negotiations as that deadline approaches, when tariff rates are scheduled to revert from a temporary 10% level to the ones Trump announced on April 2 and then suspended. The European Union wants immediate relief from tariffs in key sectors as part of any trade deal with the U.S. due by the July 9 deadline, EU diplomats told Reuters. Morgan Stanley expects Brent futures to retrace to around $60 by early next year, with the market being well supplied and geopolitical risk abating following the de-escalation of the Israel-Iran conflict. It expects an oversupply of 1.3 million bpd in 2026.
