Saudi Arabia, Iraq Send More Crude Oil to Europe as Bloc Weans Off Russian Oil
Saudi Arabia and Iraq are sending more crude oil to Europe to boost the region's oil refineries in an effort to aid the pivot away from Russian oil. Over 1 million barrels a day of crude oil -- a number that has doubled from a year ago -- has crossed into Europe from the Middle East in the first three weeks of July through a pipeline that crosses Egypt, data compiled by Bloomberg reported July 22. Most of the oil shipments into Europe are from Saudi Arabia, where companies can deliver the oil via the SuMed pipeline or on smaller ships through the Suez Canal. Iraq is sending its oil via the Suez Canal, with 1.2 million barrels a day being shipped toward the canal from the Persian Gulf in the first three weeks of July, Bloomberg said.
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The increased Middle Eastern oil shipments come as the EU's ban on Russian crude is set to enter into force at the end of the year. A piece of the sanctions package would ban insuring shipments of Russian oil to any buyers -- something the U.S. Treasury is concerned will hit overall exports since it could boost competition for Middle Eastern oil, Bloomberg said. In the meantime, Russia's oil shipments have been diverted to India and China.