Russian oil exports to China via Skovorodino seen jumping 57% in 1Q
MOSCOW (Reuters) — Russian ESPO Blend oil exports to China via the Skovorodino-Mohe pipeline are expected to jump by 57% to 6.7 MMt in the first quarter of 2018 compared with the previous three months, sources familiar with the loading schedule told Reuters on Friday.
Russia has become China’s top supplier of oil with total deliveries exceeding 1 MMbpd as part of its policy to boost ties with the Asia-Pacific amid a political stand-off with the West.
Earlier this week, Urals crude differentials in northwest Europe rose to the highest level since August 2013 in response to concerns over supplies of the grade for loading in January because of Russian plans to boost overland oil exports to China in 2018.
Russia will supply 28.3 MMt of oil to China via the Skovorodino-Mohe pipeline in 2018 as part of an inter-governmental agreement, up from 16.5 MMt seen for 2017.
Sources said that Urals and Siberian Light oil exports from the Black Sea port of Novorossiisk are seen unchanged, at 8.5 MMt in January-March.
Exports and transit of Urals oil from the Baltic Sea ports are seen declining to 19.1 MMt in the first quarter from 19.6 MMt in October–December, according to the sources.
They also said that Russian companies will likely further trim their seaborne Urals exports as Moscow has agreed to extend its oil production cuts until the end of 2018 as part of a global deal.
“I do not believe that the westward schedule will be fully completed,” a trader said.
Reporting by Gleb Gorodyankin; writing by Vladimir Soldatkin; Editing by Adrian Croft
Comments