Europe faces a “hard fight” with Asia in the crude oil market, writes Bloomberg citing analysts at Energy Aspects, a research consulting company.
According to experts, Asia may outbid Europe’s proposed oil prices, which may force the Europeans to take measures to balance the market.
According to the agency, Europe is currently “in a difficult position.” Deliveries from Russia since the beginning of hostilities in Ukraine have decreased by almost 1 million barrels per day. In parallel with this, the European Union lost its import of oil from Northern Iraq (Iraqi Kurdistan), which is similar in characteristics to Russian oil. Deliveries from there have been suspended due to payment problems, with at least 169,000 bpd being flown to the EU from the region in March. In addition, in early April, OPEC+ countries, including Russia and Saudi Arabia, agreed to cut oil production by 1.6 million barrels per day.
In turn, refiners in Asia, especially in China, are increasing demand for the type of oil produced by Russia and Iraqi Kurdistan – the so-called medium-sour oil with a medium sulfur content. Raw materials of this type are the main “diet” of Asian refineries, the agency notes.
Various restrictions are adding to the tension in the medium-sour oil market, especially as Middle Eastern countries have also begun to use more of their own oil to increase refining at their new enterprises, Bloomberg emphasizes.
Source: Rosbalt
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
