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US to reduce oil purchases from Russia in 1H 2020

Shipments of light grades of oil from Russia to the United States in the first half of 2020 will decrease by 14,000 bpd compared to July - December 2019

MOSCOW, June 17. /TASS/. In the first half of 2020, the supply of Russian raw materials to the United States will decrease by a quarter — by 26,000 barrels per day (660,000 tonnes) compared with July - December 2019 to 70,000 bpd (1.67 mln tonnes), according to analytical company Vortexa and Argus agency.

In the first half of 2019, shipments to the United States were also at a higher level — 115,000 bpd (2.75 mln tonnes).

Purchases of Urals oil decreased in general, while demand for light grades decreased less noticeably. Urals shipments to the US in the first half of 2020 will decrease by 12,000 bpd (316,000 tonnes) compared with July - December 2019 to 15,000 bpd (384,000 tonnes). A year earlier — in the first half of 2019 — such deliveries reached 38,500 bpd (969,000 tonnes).

US refiners acquire predominantly light grades of Russian oil. In March 2019 though, companies were forced to increase Urals purchases due to a ban on imports of medium-heavy oil from Venezuela. Meanwhile, at the end of last year, US refiners replaced Urals with cheaper sulfur fuel oil from Russia. This product fell in price significantly in November, before the launch of the new IMO-2020 standards for sulfur content in bunker fuels.

Shipments of light grades of oil from Russia to the United States in the first half of 2020 will decrease by 14,000 bpd (342,000 tonnes) compared to July - December 2019 to 55,000 bpd (1.29 mln tonnes).