The structural change in the global oil trade will be discussed at REW 2023 to be organized in October.
MENA Newswire: Moscow – The Russian Energy Week International Forum (REW 2023) will be held in Moscow on 11-13 October. The participants will discuss the prospects for energy cooperation between Russia and the world’s largest emerging economies including China, India, and the African countries. One of the key topics of the upcoming Forum is the impact of the restructuring of transportation and logistics corridors on the global energy sector.
The structural change is on the way
“The global oil trade is undergoing a major structural change. Middle Eastern countries, which used to play an important role in providing commodities to the growing economies of East Asia, are now increasing their oil supplies to Europe. In turn, Russia has sharply increased its oil exports to India, China, and some other Asia Pacific countries.
Additionally, Latin American countries, including Brazil and Guyana, with a commensurate shipment distance to Europe and Asia Pacific countries, are playing an increasing role in the oil market,” said Anton Kobyakov, Adviser to the President of the Russian Federation and Executive Secretary of the REW 2023 Organizing Committee.
The shifts in the oil market impacts its future
Stating that the global oil market continues to try to adapt to the current geopolitical events, “Russian oil, despite the restrictions imposed, enters various markets with a changed price structure. Logistics have become more complicated and expensive, as oil tankers have to travel long distances to deliver raw materials and petroleum products.
The impact of these shifts on the future of the oil market will be one of the most important topics of the upcoming Russian Energy Week,” Kobyakov added.
Almost half of the supply goes to 3 countries
The largest importers of Russian refined products in August 2023 were Turkey, India, and the UAE. These three countries accounted for 46% of marine supplies from the Russian Federation (1.04 million out of 2.27 million b/d). The role of Brazil, China and Malaysia is becoming increasingly significant: These regional consumers accounted for a total of 18% (397,000 b/d) of the total structure of Russian oil products supplies.
Singapore, which is actively developing its oil product hub, accounted for another 7% of the Russian Federation’s refined products shipments (152,000 b/d) in August. Greece and Malta also play a notable role: Transshipment of petroleum products takes place in the territorial waters of these EU countries, making the total share of these countries in exports in August 2023 8% (191 b/s).
Logistics flows to be restructured
“The restructuring of logistics flows is not just a beautiful slogan, but a solid fact. For example, in August 2023, the top 20 leading importers of petroleum products from the Russian Federation included 9 African countries: Algeria, Ghana, Egypt, Libya, Morocco, Nigeria, Senegal, Tunisia, and Togo. The volume of marine supplies of petroleum products from Russia to these countries reached 411 thousand barrels per day (b/d), and their share in the structure of Russian exports amounted to 18%,” says Igor Yushkov, an expert from the REW Energy Club.
In general, according to Igor Yushkov, the volume of offshore supplies of oil products from Russia has decreased by about 780,000 b/d over the past few months. This is primarily due to Russia’s commitments to reduce oil production under the OPEC+ deal.
Supported by the Moscow City Government, the Russian Energy Week International Forum is organized by the Ministry of Energy of the Russian Federation and the Roscongress Foundation, which is a socially oriented non-financial development institution and a major organizer of conventions, exhibitions and business, public, youth, sporting, and cultural events.
Contact: Igor Kuznetsov, clubrew2024@gmail.com