• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Technology & Startups

Analysis-Russia’s Arctic oil feels the chill from U.S. sanctions

January 14, 2025
in Technology & Startups
Reading Time: 5 mins read
A A
0
2
SHARES
5
VIEWS
Share on FacebookShare on Twitter


MOSCOW (Reuters) – Russia’s vast Arctic oil business is facing major disruption from U.S. sanctions on its tankers and depots, stranding crude supplies previously snapped up by Asian buyers in storage, according to three sources familiar with its logistics.

The sanctions unveiled on Friday are the toughest yet on Russia’s oil sector, targeting major producers Gazprom Neft and Surgutneftegas as well as 183 vessels that have shipped Russian oil.

Three sources who spoke to Reuters on condition of anonymity said all three of Russia’s Arctic oil grades – Novy Port, ARCO and Varandey, with about 300,000 barrels of output per day – face disruption.

The vessels and infrastructure needed by Russia’s Arctic oil business, which accounts for a tenth of its seaborne oil exports, are unique, two of the sources said.

Novy Port crude from Gazprom Neft’s Novoportovskoye field, where temperatures can hit -55 C, ARCO, from the Prirazlomnaya offshore platform, and Varandey, from Lukoil’s Timan-Pechora fields, are shuttled by a special type of ice-class vessel to the Umba and Kola floating storage facilities near Murmansk.

It is then offloaded to larger vessels – Aframax or Suezmax that can carry 100,000-140,000 tons, compared to the smaller vessels’ 30,000 tons – for shipment to the international market.

The United States has now sanctioned both Umba and Kola, and more than a dozen small tankers used as shuttle suppliers of oil from the fields.

According to LSEG data, at least 15 of the tankers sanctioned by the U.S. on Friday, including the Shturman Scherbinin, Mikhail Ulyanov and Aulis, have been actively involved in shipping Russian Arctic grades during the last two months.

The smaller shuttle tankers were designed to operate in northern seas and have a specific design allowing them to load more oil without compromising keel clearance.

“There is no option to replace those quickly. Nothing like this to buy elsewhere. The vessels were specifically built for the projects,” one of the sources said.

That could leave Russia with millions of barrels of unsold oil in storage, the sources said. According to one, the limited storage capacities at all three projects mean a couple of weeks of loading disruptions might lead to cuts in output.

Lukoil did not respond to Reuters’ requests for comment, while Gazprom Neft declined to comment.

Gazprom Neft, which produces ARCO and Novy Port, was also added to the U.S. sanction package directly, although Lukoil, which produces Varandey, was not.

ASIA BOUND

Novy Port and Varandey are favoured by refiners worldwide for their high quality – both are light, with 0.1-0.4% sulphur.

The Arctic grades, which prior to a 2022 EU embargo had been purchased by refineries in northwest Europe, have more recently been snapped up by refiners in India and China.

“Light Arctic oil grades from Russia were priced above the (G7) price cap due to their premium quality,” one of the sources familiar with dealings in the Indian oil market said.

India and China have shown however that they are not ready to accept oil coming from sanctioned tankers, and have started to look for replacements for Russian oil.

The absence of Russian Arctic oil grades in the market will likely push up prices of the U.S. flagship WTI oil grade, which is also light, one of the traders in the Asian oil market said.

India reduced U.S. oil buying after it started to snap up cheap Russian barrels from the market a couple of years ago, but a source at one Indian refiner said his company is looking at buying more U.S. oil.

NO DOMESTIC LINK

As all the oil volumes from the Arctic projects are bound for export, there is no logistical system in place for them to be fed into the Russian domestic oil pipeline system.

This means that if there are no buyers for those oil grades, volumes will have to be kept in floating storage, or Gazprom Neft will need to curb output on both projects, the sources said.

One of the sources said that while there is a possibility for some supplies of the grades to be shipped via sea to some refineries in the south of Russia, that might be costly and limited in volumes.

Lukoil’s Varandey oil supplies could technically be loaded directly from its Varandey terminal straight to international markets. However, the cost of such shipments will be higher, and the company needs time to fetch replacement tankers to the region, one of the sources said.

(Reporting by Reuters in MOSCOW, additional reporting by Nidhi Verma in NEW DELHI; editing by Guy Faulconbridge and Jan Harvey)

Tags: Arctic oil gradesGazprom NeftRussiaRussian ArcticRussian oil
Previous Post

CFCN011425_MORNWX.01

Next Post

The Czech Republic ends its energy dependence on Russian oil imports

Related Posts

Tesla is going all in to finish first in the robotaxi race

May 25, 2025
4

Pakistan allocates 2,000 megawatts of electricity to bitcoin mining, AI data centres

May 25, 2025
4
Next Post
Download app from appStore

The Czech Republic ends its energy dependence on Russian oil imports

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
Mpox

Sierra Leone reports more than 3,000 mpox cases, 14 deaths

May 25, 2025
Family photograph of Eve and Jubran provided by the Health Ministry in Gaza.

Gaza doctor loses 9 children as Israel bears down on war

May 25, 2025

RNC chair pressures Senate GOP ‘to deliver’ on Trump’s ‘big, beautiful bill’

May 25, 2025
The Straits Times logo

At least 14 killed in Pakistan storms after intense heatwave

May 25, 2025

Recent News

Mpox

Sierra Leone reports more than 3,000 mpox cases, 14 deaths

May 25, 2025
4
Family photograph of Eve and Jubran provided by the Health Ministry in Gaza.

Gaza doctor loses 9 children as Israel bears down on war

May 25, 2025
5

RNC chair pressures Senate GOP ‘to deliver’ on Trump’s ‘big, beautiful bill’

May 25, 2025
3
The Straits Times logo

At least 14 killed in Pakistan storms after intense heatwave

May 25, 2025
3

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

two views of a black splotch on a fuzzy-looking orange-and-yellow field. the one on the left is slightly blurry, while the one on the right is clear and crisp

New 8K-resolution photos of the sun show off incredible details of raging sunspots

May 25, 2025
Mpox

Sierra Leone reports more than 3,000 mpox cases, 14 deaths

May 25, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co