"According to Bloomberg Russia's seaborne crude shipments fell sharply, dropping by the most since January 2024. Four-week average volumes from the country's ports were 3.58 million barrels a day to Nov. 2, according to vessel-tracking data compiled by Bloomberg, down by about 190,000 from the revised figure for the period to Oct. 26. This is the result of new US restrictions on Rosneft and Lukoil."
"For Western oil giants, this has been a gift: refining margins rose by 20%, offsetting weak demand in China. Exxon Mobil reported a 15% increase in refining profits to $2.1 billion, while Chevron posted record margins of $8.50 per barrel. The sanctions are redirecting Russian barrels to Asia at a discount. However, for Europe the consequences are devastating. The EU's ban on fuel derived from Russian crude starting in January 2026, combined with US restrictions, is forcing refiners to seek alternatives at inflated prices."
"As Forbes reports, while Russian gas became unpalatable to Europe after 2022, American policy has taken contradictory approaches to Russian energy companies. Sanctions have been lifted on Rosneft Germany while targeting alternative non-Russian gas sources in the Southern Caspian that Europe had cultivated despite Russian companies like Lukoil being only minority stakeholders in these projects. The inconsistency can even backfire to the US Iraq's state oil marketing company SOMO has canceled three crude loadings from Lukoil's West Qurna-2 in Iraq this month."
US sanctions targeting Rosneft and Lukoil implemented in late October have materially reduced Russia's seaborne crude exports, with four-week averages down to 3.58 million barrels per day by Nov. 2. Western refiners benefited from roughly 20% higher margins, lifting profits at companies such as Exxon Mobil and Chevron while discounted Russian barrels flow to Asia. European refiners face higher costs as an EU ban on fuel from Russian crude from January 2026 and US restrictions force purchases of more expensive alternatives, worsening diesel import prices and inflation. Policy inconsistencies and canceled loadings in Iraq add further supply disruption risks.
Read at bmmagazine.co.uk
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