Trafigura, Vitol could boost Russian oil trading – #Trafigura #Vitol #boost #Russian #oil #trading
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LAUSANNE, March 21 (Reuters) – Global energy traders Trafigura and Vitol are still under international sanctions rules Russia they help export a limited supply of processed products, but they Russia are considering whether to resume more trade in their oil, their CEOs said Tuesday.
Two Swiss companies before the country’s invasion of Ukraine last February Russia was among the largest cargo carriers of crude oil and refined products.
By last summer, both firms had already sharply reduced their holdings in Russian oil and subsequently sold their interests in Vostok, a key development in Siberia.
Trafigura CEO Jeremy Weir told the FT Global Commodities Summit in Lausanne, Switzerland: “We are lifting a limited number of refined products under sanctions… our position is under review.”
The United States was clearly keen to ensure Russian oil continued to flow after an EU embargo came into effect on December 5 to prevent price rises, and the G7 has said it considers trade under the price cap mechanism legal.
The current drop in oil prices after the collapse of three banks inflation combined with risks further dampened new investment in oil production and a tight market loomed in the second half of the year as China survived the reins of COVID-19.
Sources familiar with the matter said that USA The Ministry of Finance recently held some talks with Trafigura to emphasize its position.
Russell Hardy, CEO of Vitol, said at the summit: “Currently, our trading volume per day 10Less than 0,000 barrels (bpd) is Russian business. Will it rise with a little stronger leadership? Yes, it can be.”
Vitol traded 7.4 million barrels last year, down from a year earlier as the company exited more than 90% of its previous Russian oil business.
Stephane Degenne, Gunvor’s co-head of trading, was more cautious.
“It’s a moving target right now. Sanctions can change very quickly. We are being cautious,” said Degenne.
With major oil traders out of the country, trading in Russian oil has become opaque and has largely gone to Dubai-registered start-ups whose owners are unknown, said Ben Luckock, co-head of oil trading at Trafigura.
According to him, transport has also shifted to older tankers operated by new, less experienced owners.
Reporting by Julia Payne; Written by Noah Browning; Edited by David Goodman and Jan Harvey
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2023-03-21 18:05:47
Source – reuters
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