SINGAPORE Russian fuel is expected to come to Asia and the Middle East, while fuels produced there are expected to flow to the West, Vitol's Chief Executive Officer Russell Hardy said on Monday.
He said that Russian commodities would need to find a home in places outside the United Kingdom, the United States, and the European Union, as a result of more than a million barrels of U.S. crude per day.
It's going to go further and longer distances and find different markets, and in doing so it's going to have to trade at a discount.
Fuel coming East that would otherwise have stayed in Europe, and fuel in the East going to the West will cover the shortfall, you're beginning to see that. The EU is going to ban Russian crude oil from December in a move to strip the Kremlin of revenue following Moscow's invasion of Ukraine.
Russian crude oil imports into the EU and UK fell to 1.7 million barrels per day bpd in August from 2.6 million barrels per day in January, according to the data released by the IEA, though the EU was still the biggest market for Russian crude oil.
The United States could soon surpass Russia as the main crude supplier to the EU and the UK, according to the IEA.