Crude oil exports from Russia appear to be recovering once again. In its latest weekly report, shipbroker Banchero Costa said that “despite having to make the biggest-ever reductions in crude oil production under the OPEC+ agreement in 1H 2020, Russia appears to be benefiting on the export side in Q3 2020. The cuts seem to have overturned the crude market on its heads, causing medium, sour crude to trade at wide premiums compared to light, sweet grades. In the 8 months of 2020, Russia exported 133.4 mln tonnes of crude oil by sea, according to vessel tracking data from Refinitiv. This represents a decline of -11.6% y-o-y, compared to the 150.9 mln in the same period last year. There has been not much changes in trade patterns. Seaborne exports from Russia to the European Union declined by -3.2% y-o-y to 74.9 mln tonnes in Jan-Aug 2020, from 88.6 mln t in the same period last year”.
According to Banchero Costa, “the EU is still by far the largest destination for Russian crude, but now accounts for 56% of total Russia seaborne crude exports, down from 59% in the 8 months. On the other hand, crude exports from Russia to China surged by +22.9% y-o-y to 22.8 mln tonnes. China is the destination for 17% of Russia’s total seaborne crude exports, up from +12% year-onyear in 2020. South Korea have also seen a decline in volumes from Russia. It imported 10.6 mln tonnes in JanAug, which was -12.5% y-o-y compared to 12.2 mln tonnes in 2019. South Korea now accounts for 8% of Russia seaborne exports. Volumes to Turkey also shrunk at 4.4 mln tonnes, down -48.8% y-o-y, compared to 8.7 mln tonnes last year”.
The shipbroker added that “additionally, exports to the Japan also decline, to 3.5 mln tonnes, down -22.8% y-o-y. Volumes to India increased, by +19.5% y-o-y to 3.9 mln tonnes, from 3.3 mln t in 2019. Shipments with discharge in UK also rise by +14.5% to 3.3 mln tonnes from 2.6 mln tonnes in 2019. Of Russia’s total 2020 exports, 52.3 mln tonnes, or 39.2%, was shipped from the Black Sea – almost entirely from Novorossiysk. Shipments from the Black Sea decreased by -12.9% y-o-y in 2020. The majority of the shipments from Novorossiysk, 32.8 mln t, were sent to Europe, whilst 5.9 mln t were sent to East Asia. Another 40.2 mln t, or 30.1% of the total, were loaded in the Baltic Sea. Shipments from the Baltic Sea decreased by -17.9% y-o-y in 2020. The main terminals in the Baltic are Primorsk (22.9 mln tonnes), and Ust-Luga (17.1 mln tonnes)”.
Banchero Costa also noted that “the vast majority of shipments from the Baltic were for European destinations (36.2 mln tonnes), whilst only 2.0 mln tonnes were shipped to East Asia. 29.7 mln tonnes, or 22.3% of the total, were shipped from Russia’s Far East ports. Shipments from the Russia’s East decreased by -4.6% y-o-y in 2020. The main terminals in Russia’s Far East are Kuzmino (19.5 mln t), De Kastri (7.5 mln t), and Prigorodnoye (2.6 mln t). From Russia’s East, the majority of cargoes went to China (17.1 mln t), to Korea (8.6 mln t), and to Japan (3.0 mln t). Finally, 7.1% of exports, 9.6 mln t, were loaded in the Arctic. The main terminals in Russia’s Arctic are Umba FSO (4.8 mln t), and the Murmansk (4.7 mln t). Volumes from Russia’s Arctic ports decreased by -6.3% y-o-y in 2020”, the shipbroker concluded.
Source: Hellenic Shipping