January 27, 2023 15:26 GMT
Sanctions On Russian Oil Products To Disrupt Flows: Goldman Sachs
The planned EU/G7 price cap on Russian oil products and an EU import ban are likely to disrupt global oil product supply according to Goldman Sachs.
- Russian diesel exports account for around 15% of global flows, and until recently 80% of that has been going to Europe, Goldman Sachs co-head of APAC natural resources and energy research, Nikhil Bhandari said.
- This is likely suggesting a disruption to global diesel flows, especially to Europe.
- In petroleum products, India and China are net exporters of diesel, so the redirection could be more disruptive for the energy market.
- Separately, the bank sees global refining supply-demand model implying a supply deficit in 2023.
- Russia product disruptions and lower China exports also pose upside risk to base-case gross refining margins, Goldman Sachs analysts said.