Silhouette of Oil Field at Sunset

Europe can rely on the US if it stops using Russian oil, Vortexa’s chief economist said.
US crude is “super suitable” for Europe’s refineries due to its quality, cost, and availability, David Wech said.
Russia supplies a quarter of the EU’s oil, but the bloc is scrambling to cut that following the Ukraine invasion.

Europe is under pressure to wean itself off Russian energy, starting with a ban on crude imports. It could prove expensive and politically tricky, but the region wouldn’t have a problem covering that gap and the US is emerging as an ideal substitute, according to energy market intelligence provider Vortexa.

“The US will rank highly, that’s natural, given its size, and its proximity and also the crude quality,” Vortexa chief economist David Wech said in an interview with Insider. He added that the market security provided by the US also makes it an ideal supplier.

Russia supplies about 25% of the European Union’s oil, and the bloc has paid Russia about $46 billion for its energy since the war in Ukraine started, a report by the Centre for Research on Energy and Clean Air said.

Western countries have hit Russia with tough sanctions following its invasion of Ukraine, but the EU has not yet banned Russian oil and gas. 

Germany said this week it is prepared to stop buying Russian oil, the Wall Street Journal reported, which would allow the EU to impose fresh sanctions on Moscow. Germany had already cut its intake from Russia, which now accounts for 12% of the country’s oil consumption, down from 35% before the invasion of Ukraine, German Economic Minister Robert Habeck said. 

Russia normally exports some 4 million barrels of oil per day by ship, with the rest of its roughly 7 million barrels per day in overseas sales going via pipelines east and west.

Much of this crude ends up in Europe, which takes around 2.7 million barrels per day, according to S&P Global Platts. Another 1 million barrels per day arrive via the 4,000-kilometer long Druzhba pipeline, which crosses Eastern and Western Europe and services Germany, the Netherlands, Poland and Austria, among others. 

Unlike natural gas, which arrives almost exclusively to Europe via pipeline from Russia, the remaining 1.7 million barrels a day that could be affected by an EU ban would be reasonably easy to source from a variety of crude exporters, Wech …read more

Source:: Business Insider

      

As Europe scrambles to ditch Russian oil, the US is shaping up to fill that gap, thanks to its ‘super suitable’ cheaper crude, Vortexa says

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