Some Oil from Countries Transits via Russian Infrastructure -Report
The US ban on energy imports from Russia does not restrict those originating in other countries but transit through Russia or depart from Russian ports, the US Energy Information Administration said in a Tuesday report.
Crude oil exports from countries such as Kazakhstan, Azerbaijan and Turkmenistan move through Russia’s energy export infrastructure, and the crude may enter the US if it is marketed and loaded with a certificate of origin verifying that it is of non-Russian origin, the EIA said.
Oil exported from Kazakhstan moves primarily through the Caspian Pipeline Consortium, or CPC, system, which travels through Russia to the Russian Black Sea port of Novorossiysk, according to the agency.
Crude oil is also exported from Kazakhstan through Russia’s Transneft system to Novorossiysk and the Russian Baltic Sea port of Ust Luga. Most exports originating in Kazakhstan travel by pipelines through Russia or are shipped out of Russia’s ports.
Small amounts of crude oil from Azerbaijan are exported through Russia, while some volumes from Turkmenistan can travel north to Novorossiysk from the Russian Caspian port of Makhachkala through the Baku-Novorossiysk pipeline, the EIA said.
Most crude oil exports from Kazakhstan went to Europe, but some went to the US in 2021. Crude oil from Azerbaijan has not been imported into the US since 2018, and crude oil from Turkmenistan has never been imported into the US, the EIA reported.
Pressure Mounts on European Gas Market
The European gas market is facing pressure as Russia is set to announce Thursday how gas payments are to be made in rubles, while Western buyers have agreed to continue paying only in euros or US dollars, Commerzbank said in a Wednesday note.
The risk of Russia halting gas flows is clearly high, the bank noted, with Germany’s economy minister declaring the early warning stage Wednesday morning. This is the first of three alarm stages of Germany’s emergency plan.
The European natural gas price surged roughly 7% to 114 euros ($127) per megawatt-hour Wednesday morning, according to the bank.
The emergency plan is mostly designed to boost cooperation between authorities and gas suppliers in preparation for a possible gas shortage and does not yet involve any state-imposed restrictions on gas supply, Commerzbank said. #Some Oil from Countries Transits via Russian Infrastructure -Report
READ: Oil price: OPEC+ ministers to talk via Video on Monday
