Russia’s war against Ukraine results in a reorganization of global energy markets
From January to May, crude oil exports from the United States to Europe surpassed those to Asia.
- This is the first time that Europe has overtaken Asia in the last six years since the US lifted their ban on oil exports.
- As Russia invades Ukraine, the market is disrupted. This causes a shift in flow.
- Russia’s war against Ukraine has reordered global energy markets, and Europe surpassed Asia as the largest crude oil consumer for the first six years.
According to data from Bloomberg, the US exported 213.1 Million barrels to Europe in January and 191.1 Million barrels to Asia in May.
This is the first time Europe has topped Asia in the last five years since the US lifted its ban on crude oil exports. In recent years, Asia’s imports from the US have been relatively flat while Europe’s have been well under 200 million barrels.
This shift in consumption is a clear example of how Russia’s war against Ukraine has triggered upheaval across global energy markets.
Europe is attempting to shift away from its dependence on Russian energy and explore other sources. Already, the US was sending large amounts of liquefied gas to Europe three times the amount exported in 2021. This year, Europe has overtaken Asia as the top destination for US LNG.
Russia still makes quick cash for its crude oil, while China, India, and Saudi Arabia grab discounted supplies that are not available to the West.
To make way for its own crude oil exports, Saudi Arabia has actually more than doubled its imports of Russian oil.
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