Vitol will stop buying Russian oil this year

Dutch energy and commodity trade The source said that the company will not enter into any new transactions for Russian crude and products.

Vitol declined to comment other than to confirm the accuracy of an article published by Bloomberg, which reported the news earlier.

Since Russia’s invasion of Ukraine in February, the United States, the United Kingdom, Canada and Australia have announced an embargo on Russian oil.

Major companies including coincidenceAnd total energy Neste has also stopped buying Russian crude, or has said it will do so by the end of 2022, and a broader de facto ban has been imposed as banks, merchants, shipping companies and insurers try to avoid falling into the trap of Western financial sanctions.

As Russian oil became toxic to many buyers, the standard Ural crude was trading at an ever-larger discount on the world market. It is now worth $34 a barrel less than Brent crude.

The International Energy Agency estimated on Wednesday that Russian oil supplies will fall by 1.5 million barrels per day in April, and could fall by as much as 3 million barrels per day from May as buyers move away.

“While some buyers, most notably in Asia, have increased their purchases of sharply discounted Russian barrels, traditional customers are cutting back,” the agency said. “At the moment, there are no indications of an increase in the volume of going to China.”

Vitol’s revenue doubled last year to $279 billion my world The demand for oil has bounced back After economies reopen from pandemic lockdowns. According to its website, the company traded 7.6 million barrels of crude and other oil products per day last year.

This is more than Russia’s daily exports of crude oil, which the International Energy Agency estimated at 4.7 million barrels in 2021. Of that, about 2.4 million barrels per day went to Europe.

But there are indications that the European Union could be next to give up Russian oil. European Commission President Ursula von der Leyen said last week that the bloc was considering an oil embargo as part of a new round of sanctions.

The cumulative effect of this increased ban could be a global surge in oil prices as buyers scramble to replace supplies. Russia is the world’s second largest crude oil exporter, after Saudi Arabia, and accounted for 14% of global supply last year, according to the International Energy Agency.

The price of Brent crude, the global benchmark, rose in early March to Swipe for a little while $139 A barrel – a 14-year high – but has since fallen back to around $107.
The coordinated release 240 million barrels of United State And member states of the International Energy Agency can help ease prices and offset the loss of Russian crude supplies.

– Chris Liakos contributed to this article.

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