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OIL: North Sea and Kazakh Flows Moving from Europe to Asia

OIL
BulletEnergy BulletsCommodities

Millions of barrels of North Sea and Kazakh oil normally consumed by oil refineries in Europe are instead heading to Asia, as US sanctions on Russia revive arbitrage opportunity, Bloomberg reports.

  • Asian companies are on course to collect ~360,000 b/d of oil from the North Sea and Kazakhstan in February, a 10-month high, according to vessel tracking and trading data compiled by Bloomberg.
  • Increased shipments to Asia come following significant US sanctions on Russia imposed on Jan. 10. Premiums for Middle East crude jumped subsequently, increasing a trading incentive to move barrels east, amidst steady OPEC output.
  • Around 11m-12m bbl of North Sea grades Johan Sverdrup and Forties, as well as 8m bbl of Kazakh CPC blend crude will head to Asia in the next two months, according to Bloomberg trading sources
  • The flows could go some way to closing the arbitrage; the premium has become “far too expensive” and should correct lower, according to a Sparta Commodities analyst.
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Millions of barrels of North Sea and Kazakh oil normally consumed by oil refineries in Europe are instead heading to Asia, as US sanctions on Russia revive arbitrage opportunity, Bloomberg reports.

  • Asian companies are on course to collect ~360,000 b/d of oil from the North Sea and Kazakhstan in February, a 10-month high, according to vessel tracking and trading data compiled by Bloomberg.
  • Increased shipments to Asia come following significant US sanctions on Russia imposed on Jan. 10. Premiums for Middle East crude jumped subsequently, increasing a trading incentive to move barrels east, amidst steady OPEC output.
  • Around 11m-12m bbl of North Sea grades Johan Sverdrup and Forties, as well as 8m bbl of Kazakh CPC blend crude will head to Asia in the next two months, according to Bloomberg trading sources
  • The flows could go some way to closing the arbitrage; the premium has become “far too expensive” and should correct lower, according to a Sparta Commodities analyst.