MOSCOW, – A pointy decline in sea-borne transportation prices for Russian flagship Urals crude has made exports by way of the Druzhba pipeline to Europe much less profitable in comparison with shipments from ports, Reuters calculations confirmed on Friday.
Merchants stated this provides suppliers an higher hand in forthcoming negotiations with patrons in Europe as oil volumes have tightened as a result of a worldwide deal on manufacturing cuts.
“Provides by way of Druzhba have been dropping by way of effectivity compared to the Urals provides by way of the Baltic Sea’s ports and Novorossiisk (on the Black Sea) because of the sharp freight charges decline for the reason that summer season,” a dealer stated.
Freight charges in North West Europe and Mediterranean have plummeted to a 10-year low amid oil manufacturing cuts by the OPEC+ group of OPEC and allies together with Russia.
In line with the Riverlake information, out there in Refinitiv Eikon , and Reuters calculations, transport prices on routes from the Baltic Sea ports to Rotterdam have declined within the second half of the 12 months by round $0.70 per barrel from January-June. (writing by Vladimir Soldatkin; modifying by David Evans)