U.S. Oil Makes it to Ukraine in Another Blow to Moscow

OILMONSTER.COM- U.S. crude exports are gaining traction in Europe as even Ukraine turns into a significant consumer of American barrels at the expense of Russian supplies amid heightened U.S. political pressure on Moscow and problems over contaminated Russian oil.

Ukraine this month received its first ever barrels from the United States, according to Refinitiv Eikon flows data, as the tanker Wisdom Venture unloaded 80,000 tonnes of Bakken crude in Odessa on July 6 for the Kremenchug refinery, the port said.

The oil was sold by BP to Ukrtatnafta, sources said, adding Ukrtatnafta will receive a further similar amount of U.S. crude around July 24, and more purchases were likely in August.

“The Ukrainian oil industry is set to rise from the ashes with its new president (Volodymyr) Zelenskiy, so it’s an obvious new market for the United States, though the price matters,” a trader in a European oil major said.

Ukraine’s oil sector, formerly mostly operated by Russian companies, has struggled since geopolitical tensions between the countries escalated in 2013-2014.

Since then most of the country’s refineries have remained closed and the only oil supplied to Odessa is Azeri Light, sourced by Azerbaijan’s SOCAR. Since January 2019 it has supplied 320,000 tonnes, Refinitiv Eikon flows data shows.

Courtesy: www.reuters.com