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These charts show Russia’s invasion of Ukraine has changed global oil


Leaders of the European Union reached an agreement this weekTo ban most Russian crude oil imports and petroleum products, however, nations had already stopped buying oil from Russia, thereby altering the global flow of the oil that is the powerhouse of the globe.

According to Kpler, some EU member countries had preemptively acted in anticipation of possible measures and Russian oil exports were already affected.

According to the company, Russian crude oil “on the water”, has risen to almost 80 million barrels in this month’s report. This is an increase of less than 30,000,000 barrels before the invasion by Ukraine.

“The rise in the volume of crude on the water is because more barrels are heading further afield —specifically to India and China,” said Matt Smith, lead oil analyst for the Americas at Kpler.

“Prior the invasion of Ukraine a lot less Russian crude was moving towards nearby destinations in Northwest Europe,” he said.

Energy markets have been rocked by Russia’s invasion of Ukraine towards the end February. Russia is the most important oil and product exporter worldwide, with Europe especially dependent upon Russian fuel.

For weeks EU leaders debated a sixth round. But a potential oil embargo was a sticking point. Hungary wasn’t among those nations to agree to the blanket ban. Viktor Orban (Prime Minister), an ally to Russian President Vladimir Putin said that a ban on Russian energyAn example would be “atomic bomb”For Hungary’s Economy.

Monday’s deal among leaders of the bloc concentrates on Russian seaborne crude. This leaves space for some countries including Hungary to continue importing via pipeline.

As buyers fretted about the availability of energy, the oil market saw its highest levels since 2008. While demand has recovered in the aftermath of the pandemic’s onset, producers have managed to keep their output under control, so prices are still rising as compared with before.

RBC stated Tuesday that Russia’s invading Ukraine “has triggered an unraveling how the global market historically source barrels,” RBC wrote to clients.

According to the International Energy Agency, March was a good month for energy. three million barrels per dayRussian oil production was under threat. Although these estimates were later revised downwards, data from before the EU agreed to ban Russian oil shows that Russian fuel exports to Northwest Europe have already dropped off a cliff.

Russian oil, however, is finding buyers, at least temporarily, because the Urals crude from Russia trades at a discounted rate to international benchmarks Brent crude.

Kpler reports that more oil is being shipped to India than to China in recent years.

Wolfe Research also agreed with this sentiment, stating that although Russian oil production declined significantly since the beginning of World War II, its exports remain “surprisingly resilient”.

According to the firm, Russia has changed its export routes to India. This is reflected in increased vessel traffic via the Suez Canal. Sam Margolin led the analysis and noted that traffic through this key waterway has increased 47% in May over last year.

The firm stated that rerouting Black Sea oil tankers to Suez rather than Europe was a more complicated route, which is inflationary for oil prices. These ‘last-resort’ trade patterns could lead to bigger supply issues in the future as the market has clearly exhausted all its options.

Gabriel Cortes of CNBC contributed reporting.