Russian crude exports rose 12% thanks to seaborne traffic - Alexander Novak
An additional tanker fleet is required to meet growing demand
Despite the sanctions, in the first months of 2022 crude oil exports grew by 12%, prompting increased development of maritime transport, a Russian official said.
Over the past two years, the oil market has recovered from a downturn during the pandemic, and the decline in crude oil production is projected to be restored by the end of 2022, Alexander Novak, Deputy Prime Minister said in an interview with Rossiya-24 TV on the sidelines of SPIEF-2022.
The government predicts a 5% drop in oil production to 500 million tonnes in Russia at the end of the year. In his opinion, the sanctions policy provoked an increase in prices (crude oil prices almost doubled over the year) and a radical restructuring of logistics models.
“In June, crude oil production stabilized due to new partners in the Asia-Pacific region. Due to the redistribution of market outlets, today more and more hydrocarbons are transported by maritime transport. Today, the capacities of the ports allow us to redirect resources to the East, but we need to provide the industry with additional tankers, taking into account that this will entail additional costs for the newbuilds and freight rates,” Alexander Novak was quoted as saying.
The sanctions regime did not have a strong impact on shipping of crude oil cargo, the official said.
“The problem of ship insurance is being addressed together with partner countries, which is confirmed today by an increase in export growth of 12% compared to last year,” he added, noting that in the coming years, according to forecasts, demand in the global oil market will grow by 5%, or by 4-5 million barrels per day, and there are no free capacities on the global market.
