The impact of EU oil sanctions on crude oil and oil product markets in the Netherlands and its relevant markets
- CIEP, December 2022
From just-in-time to just-in-case or just too Late? The Impact of EU oil sanctions on crude oil and oil product markets in The Netherlands and its relevant markets.
International crude oil and oil product markets are currently digesting the consequences of the EU oil sanctions on Russian crude oil and oil products. The sanctions will be implemented on 5 December 2022 for crude oil and 5 February 2023, respectively. This qualitative study tries to assess the potential impact of the sanctions on NW Europe and was done in assignment for VEMOBIN and VOTOB.
The disintegration of the EU crude oil and oil product market from Russia is challenging. The EU is a large importer of crude oil and oil products. The re-routing of crude oil flows is well underway. The ban on oil product imports from Russia may be more problematic to digest for world and NW European markets because of an anticipated shortage in ocean-going transportation capacity to carry the Russian oil products to markets beyond their traditional market in Europe. Many uncertainties remain also on the exact functioning of the oil price cap and may influence the volume of crude oil and oil products (particularly fuel oil, naphtha, and gas oil/diesel) available to world markets after the sanction dates.