FGE

Russia is a major producer — and exporter — of crude oil and natural gas, and a major exporter of refined products to boot. So it’s important to keep an eye on what’s going on in Russia, because as U.S. producers and refiners know all too well, what happens halfway around the world often has ripple effects in places like the Permian, the Houston Ship Channel and the Sabine Pass LNG terminal. Today, we discuss Russian crude production and refinery output, its compliance with the OPEC/NOPEC agreement to rein in crude production, and the country’s efforts to steer more of its crude and refined-products exports to Russian ports.  This blog is based on the latest FSU Monthly report from our friends at FGE – Facts Global Energy. 

Production cuts by Saudi Arabia and other OPEC producers have had a profound effect on Asian refiners’ crude oil procurement by opening the door to more U.S., Canadian and North Sea crude deliveries to the Far East and South Asia. Of the four major Asian refining countries, China has seen the largest drop in imports of East of Suez crude, which includes oil produced in the Middle East, the Asia-Pacific region, Australasia and far-east Russia, but India, Japan and South Korea have experienced declines as well. What’s going on? And what does it mean for Atlantic Basin crude producers? Today, we discuss recent changes in global crude price differentials and Asian crude import slates, which include more imports from the U.S.