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Changes in Global Supply of Russian Oil in 2023: Impact on Oil Transportation and Export Markets

Changes in the global supply of Russian oil have significantly altered oil transportation. According to Transneft, raw materials from Druzhba went to the ports.

“Oil supplies through the system of trunk oil pipelines of Transneft PJSC in 2023 remained at the level of 2022, having decreased slightly within one percent. At the same time, the overall decrease in supplies of Russian oil for export amounted to 6.5%, with an increase in supplies to Russian refineries by 2.3%,” Transneft reports.

The company noted that, like last year, 40 million tons were sent to China via oil pipelines, but oil left Druzhba. In December 2022, the EU banned the import of Russian oil by sea, but Germany and Poland refused to receive raw materials from Russia in 2023, and Hungary, the Czech Republic and Slovakia remained among the buyers.

“Since the beginning of last year, there has been a redistribution of pipe supplies from the Druzhba oil pipeline (a drop of 60%) to Russian oil ports (an increase of 7.2%). Thus, including transit volumes, the following were shipped through the ports of the Russian Federation: the port of Novorossiysk – 30 million tons (+3.1%), the port of Primorsk – 44.4 million tons (+6.5%), the port of Ust-Luga – 34 million tons (+9%), Kozmino port – 42.8 million tons (+9.4%),” reports Transneft.

After the EU banned the import of Russian oil, producers redirected flows to new markets. As the Deputy Prime Minister stated at the end of the year Alexander Novakup to 90% of oil is now exported to China and India.

At the same time, the country’s main oil transportation company noted, conditions for oil exports from Novorossiysk have deteriorated significantly.

“In the port of Novorossiysk in 2023, the ban on oil loading lasted 110 full days due to weather restrictions introduced by the port authorities, which is similar to 2022 (111 days). While in previous years of observations, the duration of storms ranged from 50 to 90 days per year in the above-mentioned port. For comparison, in 2023, in the port of Ust-Luga during the year, a storm warning was in effect for 4.3 days, in the port of Primorsk – 3.5 days, and in the port of Kozmino – 32 days,” Transneft added.

The company also reported an increase in the transportation of petroleum products by 10.9% – to 43.3 million tons: “At the same time, supplies to the domestic market increased by 8% to 14.6 million tons, and for export – by 12.5%. Including from Primorsk by 21% and Novorossiysk by 5.8%. With the actual stop of exports through product pipelines in the western direction, there is an increase in exports to the EAEU countries – Kazakhstan, Kyrgyzstan and Tajikistan – up to 530 thousand tons (+29.3%).”

2024-01-10 16:31:00
#Oil #left #Druzhba #tankers #EADaily

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