U.S. Oil Makes it to Ukraine, a blow to Moscow

MarineLink | 7/12/2019 | Staff
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U.S. crude exports are gaining traction in Europe as even Ukraine turns into a significant consumer of American barrels at the expense of Russian supplies amid heightened U.S. political pressure on Moscow and problems over contaminated Russian oil.

Ukraine this month received its first ever barrels from the United States, according to Refinitiv Eikon flows data, as the tanker Wisdom Venture unloaded 80,000 tonnes of Bakken crude in Odessa on July 6 for the Kremenchug refinery, the port said.

Russia - Oil - Black - Sea - Bosphorus

Russia often struggles to export oil from the Black Sea via the narrow Turkish Bosphorus and Dardanelles straits due to congestion, making the arrival of the U.S. crude into the Black Sea from the Mediterranean even more extraordinary.

The oil was sold by BP to Ukrtatnafta, sources said, adding Ukrtatnafta will receive a further similar amount of U.S. crude around July 24, and more purchases were likely in August.

Oil - Industry - Ashes - President - Volodymyr

"The Ukrainian oil industry is set to rise from the ashes with its new president (Volodymyr) Zelenskiy, so it's an obvious new market for the United States, though the price matters," a trader in a European oil major said.

Ukraine's oil sector, formerly mostly operated by Russian companies, has struggled since geopolitical tensions between the countries escalated in 2013-2014.

Country - Refineries - Oil - Odessa - Azeri

Since then most of the country's refineries have remained closed and the only oil supplied to Odessa is Azeri Light, sourced by Azerbaijan's SOCAR. Since January 2019 it has supplied 320,000 tonnes, Refinitiv Eikon flows data shows.

U.S. oil has yet to become a common feedstock for European buyers, who complain about volumes and varying quality, but recent market changes have shown American barrels can be a reliable alternative, traders said.

Crisis - End - April - Oil - Druzhba

The crisis that erupted at the end of April over contaminated Russian oil delivered through the Druzhba pipeline caused buyers to look for alternatives.

"Refiners who were solely reliant on Druzhba...
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