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Wednesday, 21 September 2022

Egypt can’t get enough of that sweet Russian crude

Incoming shipments of Russian fuel to Egypt have risen sharply in the past months as Moscow looks to alternative markets in the Middle East and Asia in light of Western sanctions, Bloomberg reports.

How sharply? Last month 51 shipments of oil were sent from Russia to Egypt, up from just one in August 2021.

El Hamra has been one destination: Bloomberg reported in August that Russia was shipping oil to the El Hamra oil terminal on the North Coast, which is able to store 1.5 mn barrels of crude. Around the same time Oil Ministry announced a large-scale expansion of the terminal that would more than triple storage capacity to 5.3 mn barrels.

It’s not just us: Shipments heading to the UAE rose more than 400% y-o-y in August, China-bound ships more than doubled. Saudi Arabia and Malaysia took 32 and 48 cargoes respectively during the month after receiving none in August 2021.

Flows could rise in the coming months, as pressure mounts for Moscow to find new buyers ahead of the EU’s ban on Russian crude, which will come into effect in December, Bloomberg says.

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