Iraq’s state oil marketer SOMO has approached French traders about the possibility of supplying Europe with crude, its director general said May 31, as the EU seeks to implement a ban on Russian seaborne imports. SOMO still aims to maintain its key supply contracts with Indian and Chinese state customers, who have signed long-term contracts, .
European refiners looking to replace Russian crude have turned to countries and grades that have seen limited flows to the continent in recent years, as well as buying more oil from sources used regularly prior to the invasion of Ukraine. Refiners have started buying crude cargoes from as far afield as Abu Dhabi and Angola .
EU leaders agreed a compromise deal to ban Russian oil imports by sea late May 30 in a move set to phase out almost 90% of Russian oil imports into the trade bloc by year-end and trigger a major upheaval in global oil trade. Following weeks of negotiations over the EU’s latest Russian sanctions plans, .
Geopolitical risks fueled by Iran and US tensions reasserted itself after the former seized two Greek tankers, unsettling an already volatile oil market that has seen oil prices rise to two-month highs. On May 27, Iran detained two Greek-flagged and owned oil tankers – Delta Poseidon and Prudent Warrior in the Persian Gulf, some days .
Middle Eastern oil producers lowered their official selling prices as lockdowns in China continued to suppress demand and backwardation eased across all pricing benchmarks