- Oil steadies as traders weigh impact of Russian sanctions
- The WTI prompt-month contract was up $0.30 to $62.09/Bbl Friday morning (7:45 AM CT)
- Russian oil exports to key Indian refiners are expected to fall following new US sanctions on Rosneft and Lukoil, while Chinese state-owned firms have begun canceling purchases
- Chinese state-owned buyers represent more than 400 MBbl/d of Russian seaborne shipments, roughly 40% of total arrivals by vessel, according to Kpler
- Chinese companies have suspended some spot cargo purchases, mainly ESPO crude from Russia’s Far East, Bloomberg reported
- President Trump is expected to discuss China’s oil trade with Russia during a meeting with President Xi Jinping next week
- The European Union has also tightened pressure on Moscow with a sanctions package targeting Russia’s energy infrastructure, including a full transaction ban on Rosneft and Gazprom
- “Overall, we estimate between 500–600 MBbl/d of Russian oil production is at risk of being curtailed,” said Janiv Shah, vice president at Rystad Energy
- Kremlin officials acknowledge the potential budget hit but are preparing to rely on a network of traders and shadow tankers to mitigate the financial fallout
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