European refineries received 1.84 million barrels per day of Russian crude oil last week – the third increase in Russian crude oil for refineries in as many weeks. Oil flows from Russia to Europe, including Turkey, are now at their highest level in almost two months. The increases came mainly from Russia’s Litasco SA – Lukoil’s trading arm – and Turkey. Lukoil has three refineries in Europe – in Italy, Romania and Bulgaria – and continues to intensify its purchases of Russian crude oil. While the rest of Europe may not increase its imports of Russian crude oil – the cuts have certainly slowed, Bloomberg analysis revealed. The EU has agreed to impose an embargo on 90% of all its oil imports from Russia by the end of the year – but perhaps the most damaging aspect of the European Union’s effort to hit Russia where it hurts – through its oil revenues – has the form of insurance ban. Under the ban – also signed by the United Kingdom – EU operators will not be allowed to insure or finance the shipment of Russian crude oil to other countries. That would cripple Russia’s ability to export crude oil anywhere in the world, analysts say. Russia, however, said it would provide state security under Russia’s trade deal with other countries, isolating itself from any ban the EU and the UK could cook. However, most of the world’s ports do not allow tankers to dock unless they have full insurance. Russia continues to ship large quantities of Russian crude to China and India as well, with total Russian export revenue rising 6% last week. By Julianne Geiger for Oilprice.com More top readings from Oilprice.com:
