Russian oil exports to US double than Saudi Arabia despite sanctions

As per the latest updates from Energy Intel, “Russia is shipping increasing volumes of crude oil and refined products to the US to meet that nation’s rising demand.”

The news also states that Russia is now, “the second-largest foreign supplier of fuel to the US after Canada, despite being subject to a range of sanctions imposed by Washington.”

The article also mentions the record oil imports from Russia, by the US, as 844,000 barrels per day in May.

Key quotes

Russian fuel exports to the US are more than double the volumes sailed over by Saudi Arabia, which is focussing on the more lucrative Asian market. Russia kept the volumes steady to China.

US imports of Russian crude were 185,000 b/d in the first half of the year, but 277,000 b/d in May, even more than the 255,000 b/d the Saudis landed.

The shift to the US might not be structural when Europe picks up refinery runs once the pandemic is under control.

Russian exports through the Druzhba pipeline have been 200,000 b/d lower but not all volumes might return as countries like Poland try to diversify away from Russia. Russian oil firms mostly cut output from less-efficient brownfields that feed the Druzhba pipeline.

Also, Moscow has asked domestic refiners to provide sufficient volumes of products to the home market.

Crude throughput in Russia was 5.7 million b/d in the first half of 2021, versus 5.4 million b/d in the second half of 2020. Some of the additional products ended up in the US.

Market reaction

The news signals increasing oil demand from the US and should have favored the energy prices. However, WTI remains mostly unchanged above $69.00 after the news release.

Read: WTI Price Analysis: Mildly offered around $69.00 but bulls remain hopeful

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more