Abu Dhabi crude to head to Europe and replace Russian oil: sources

Oil Updates – Crude Hits Two-Week Low; Crude from Abu Dhabi to Europe; Fire in a Russian depot

RIYADH: Oil prices fell to nearly two weeks on Monday, extending last week’s losses, as concerns grew that prolonged COVID-19 lockdowns in Shanghai and potential U.S. rate hikes would hurt global economic growth and fuel demand.

Brent crude LCOc1 futures were down $3.15, or 3.0%, at $103.50 a barrel at 0326 GMT. They touched $103.41 earlier in the session, the lowest since April 12.

US West Texas Intermediate crude futures fell $3.01, or 3.0%, to $99.06 a barrel, after earlier skidding to $98.93, the lowest since the 12 april.

Benchmarks lost almost 5% last week due to demand issues.

Abu Dhabi crude replaces Russian oil

A shipping unit of France’s TotalEnergies tentatively chartered a tanker to load crude from Abu Dhabi in early May for Europe, the first such shipment in two years, according to traders and a shipping report on Monday.

CSSSA, the maritime arm of TotalEnergies, chartered the Suezmax tanker Moscow Spirit to load 1 million barrels of Murban crude from the port of Jebel Dhanna in the United Arab Emirates for Britain from May 1-3 at a worldwide rate of 60 points, according to the shipping report. .

Das crude from Abu Dhabi was last loaded for Italy in May 2020, according to data from Refinitiv Eikon.

The arbitrage window for Middle Eastern crude to head to Europe has opened after European buyers shunned Russian oil following Russia’s invasion of Ukraine, which she calls “a special operation”.

More crude shipments from Abu Dhabi – Murban, Das and Upper Zakum – are expected to head to Europe in the coming months to replace Russia’s shortfall as the EU prepares more sanctions on Russian oil imports, traders said, possibly diverting some supplies from Asia.

Global trade flow is “readjusting” to reflect changes in Russian oil supply, a trader has said.

Fire breaks out at Russian oil depot

A major fire was reported early Monday at an oil storage facility in the Russian city of Bryansk, Russian news agencies said, citing the Ministry of Emergency Services, but gave no details.

There was no immediate indication that the fire was linked to the war in Ukraine, although Russian officials said last week that Ukrainian helicopters hit residential buildings and injured seven people in the area.

Bryansk is an administrative center located 154 km northeast of the Ukrainian border, near the Sumy and Chernihiv regions, and about 380 km (236 miles) from Moscow, the Russian capital.

Moscow calls its actions in Ukraine, now entering its third month, a special military operation.

(With contributions from Reuters)

Mary I. Bruner