Embargo of Russian oil now spreading to Kazakhstan

The self-imposed embargo of Russian oil is spreading to Kazakhstan crude, with three shipments canceled previously 24 hours.

The Marvel Vega, Free Spirit and Stealth Haralambos, all Marshall Islands-flagged vessels, had been Black Sea-bound for the Port of Novorossiysk.

S&P International knowledgeable shoppers of the three canceled loadings, citing the conflict threat premium related to the grade of oil.

These newest cancellations led the Chevron-led consortium at Tengiz — Kazakhstan’s highest-producing oil area — to concern an announcement that it was “monitoring developments.”

Manufacturing is constant, in line with the consortium.

Andy Lipow, president of Lipow Oil Associates LLC, informed American Shipper that Kazakhstan crude oil, which is the sunshine candy selection like Brent and WTI, is buying and selling at a reduction. The crude is at the moment being provided at a $9-per-barrel markdown to Brent. 

Previous to Russia’s invasion of Ukraine, Kazakhstan crude was offered at a slight premium to Brent. 

“CPC Pipeline (Caspian Pipeline Consortium led by Chevron), which originates in Kazakhstan and ends on the Russian port of Novorossiysk on the Black Sea, carries each Kazakhstan and Russian oil,” mentioned Lipow. “Consumers are hesitant due to the chance of Kazakhstan’s oil being ‘tainted’ with possession from a sanctioned particular person or entity.”

The state of Russian oil for the USA remains to be in play. Seven tankers are traversing the Atlantic carrying crude.

One, the Bahamas-flagged Seoul Spirit, has been anchored since Tuesday over at Massive Stone Seashore off of Delaware.

One factor is definite: Whereas some Russian oil imports may be on their manner as a result of the transactions passed off greater than a month in the past, they’ll decline to very low ranges within the coming months. Stated Lipow: “I doubt any main oil firm within the U.S. will enter into a brand new transaction for Russian oil beneath these circumstances.”