March 01, 2023 09:22 GMT
MNI COMMODITY ANALYSIS: Russian Oil Products Weather Feb 5 Sanctions Test
In the early days of EU/G7 sanctions on Russian oil products, a clear trend emerges of market inefficiencies.
- An EU import ban and G7 price cap has resulted in Russian oil product flows pivoting away from western markets and instead heading to Asia and North Africa.
- The Russian fleet is spending far longer at sea because of the extended journey's, a trend that will press the fleets ability to operate effectively longer term.
- Building floating storage will be one of the key indicators that Russia is struggling to place its barrels and may be forced to cut production.
- Europe is well prepared for the Feb 5 deadline with stocks at multi-year highs, while alternative supplies have been found from across global markets.
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