U.S. Oil Import Ban To Leave More Russian Crude Unsold

Related stories

Hadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APC

By Abiola Olawale Former Minister of Aviation, Hadi Sirika, has...

China Snubs U.S. Crude for Third Month, Even as Ethane Trade Restarts

China has avoided buying U.S. crude oil for three...

Super Eagles Icon Peter Rufai Passes Away at 61

By Abiola Olawale The Nigerian football community has been thrown...

Dakuku Peterside’s Beneath the Surface Book Out in October

By Abiola Olawale Masobe Books, a renowned publisher has announced...

Oil Prices Dip on Confirmation of Inventory Build

Crude oil prices opened weaker today following Wednesday’s release...

The U.S. decision to ban imports of Russian oil is likely to worsen Russia’s struggles to sell its cargoes as buyers will avoid Russian crude even more than they have been doing so far, traders told Reuters after U.S. President Joe Biden said on Tuesday America is banning Russian energy imports immediately.

The ban includes not only Russian oil, but also coal and liquefied natural gas (LNG). The United States, which imports around 500,000 bpd of Russian crude and products, can afford to ban imports from Russia without severe consequences on its industry and economy, unlike Europe.

Although the U.S. ban will directly hit only a small amount of Russian oil exports, the indirect hit could be much higher because a growing number of traders and buyers will be shunning Russian crude due to “self-sanctioning” and reputational risks.

Case in point—last week, Shell came under severe criticism for saying it had made the “difficult decision” to buy a cargo of Russian crude oil.

This week, Shell said it would stop all spot purchases of Russian crude in an immediate first step of withdrawing from involvement with any Russian crude oil, refined products, gas, and LNG.

“We are acutely aware that our decision last week to purchase a cargo of Russian crude oil to be refined into products like petrol and diesel – despite being made with security of supplies at the forefront of our thinking – was not the right one and we are sorry,” Shell’s CEO Ben van Beurden said in a statement on Tuesday.

TotalEnergies, for its part, has instructed its traders not to buy Russian oil after Russia invaded Ukraine.

“My traders don’t take any more oil from Russia since the beginning of the crisis,” TotalEnergies CEO Patrick Pouyanné said on the CERAWeek by S&P Global conference in Houston this week, as quoted by Bloomberg.

According to JP Morgan, some 70 percent of Russia’s seaborne oil is struggling to find buyers.

“Shipping disruptions in the Black Sea have brought trade deals with the country to a virtual standstill,” JP Morgan said, quoted by Reuters.

NB: Tsvetana Paraskova wrote this article for Oilprice.com

Tsvetana Paraskova
Tsvetana Paraskova
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
China Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsSuper Eagles Icon Peter Rufai Passes Away at 61Dakuku Peterside’s Beneath the Surface Book Out in OctoberOil Prices Dip on Confirmation of Inventory BuildBuhari In Stable Condition - Ex-Aide ConfirmsBREAKING: Ex-President Buhari sick, hospitalised abroad2027: Abure, Usman Clash Over Peter Obi’s Rising Profile in ADC CoalitionMTN’s Dabengwa Tier III Cloud Data Centre: A New Era for West African Tech and AIGanduje: Why are they resigning?OPEC Reports a Global Oil Production Decline in 2024IMF Warns FG to Overhaul 2025 Budget to Prevent Economic Meltdown2027: Peter Obi Vows, Says ADC Coalition 'll prioritize Nigerians’ WelfareTragedy! Liverpool Star Diogo Jota Dies in Car Crash in SpainFamily Announces Burial Date of Ex-Kwara Governor, Cornelius AdebayoSex Scandal: Baltasar Engonga, Ex-Equatorial Guinea Anti-Corruption Boss Bags 18 Years
X whatsapp