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Russian oil disruptions escalate, global prices rise -Breaking


© Reuters. The view from the general perspective shows an oil refinery hidden behind residential structures in Omsk (Russia), February 10, 2021. REUTERS/Alexey Malgavko


Julia Payne and Dmitry Zhdannikov

LONDON, (Reuters) – The disruptions to Russian oil exports increased Wednesday as more countries and businesses refused to import or transport Russian crude oil. Also, at least 10 tankers failed to find buyers on Wednesday. This has driven up oil prices.

Although the United States and European Union have placed severe sanctions against Russia in response to the invasion of Ukraine, they have so far resisted direct action on Russian energy exports. This is despite the fact that oil and gas prices are at multi-year highs.

On Wednesday, U.S. officials sent contradictory messages to each other

The White House spokesperson stated that Washington is “very open” for sanctions, but an adviser to the White House said the Biden administration did not want it.

China’s bank regulator stated that China will not be joining sanctions against Russia.

Although many Western buyers are still waiting for sanction clarifications, they have already resisted the temptation to buy Russian oil.

Accordingly, Russian oil exports of products and 7 million barrels of crude per day have been interrupted and Kazakhstan exports to Russia via Kazakhstan has also been affected. This amounts to about 8% of the global supply.

Canada announced it will close ports for Russian-owned vessels, while Frontline (NYSE) stated that it is unlikely to transport Russian crude.

Surgutneftegaz was one of the most important Russian oil corporations, however, it couldn’t find buyers for nine tanksers carrying 6.5 million barrels crude. Traders said this.

Two tankers carrying Russian and Kazakh oil to the Black Sea were cancelled by their shipowners, according to traders.

Buyers began looking for alternatives in a tight market as a result of the Russian oil export interruptions.

Indian State Refiner Bharat Petroleum Corp. needed extra oil from Middle East. Polish refiner PKNOrlen ordered five North Sea tankers. Saudi Aramco (SE:).

Russia’s independent Novoshakhtinsk Refinery has been shut down due to falling oil product demand.

Exxon Mobil In exiting Russia, (NYSE) was joined by oil majors BP(NYSE:), and Shell (LON)

Trafigura, a trading house that specializes in Russian investments, said it will freeze them and would be reviewing its participation in Vostok oil’s joint project with Rosneft.

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