Surge in Middle East oil exports to Europe: Bloomberg

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Crude oil shipments from the Middle East to Europe have increased by 90% since January, as the EU avoids Russian oil due to sanctions, according to Bloomberg, citing vessel-tracking data.

Pumping volumes from the Middle East to Europe have nearly doubled so far this year, according to the report.

According to Bloomberg, more than 1 million barrels per day were pumped through Egypt's Sumed pipeline from the Middle East, primarily Saudi Arabia, to Europe in the first three weeks of July. Another 1.2 million people arrived via the Suez Canal, mostly from Iraq.

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This is 90 percent more than what Europe received from the region in January, the month before Russia launched its special military operation in Ukraine, which was quickly followed by EU sanctions against Moscow, including Russian energy supplies, according to the news outlet.

The EU imposed new sanctions on Russia in early June, including a partial embargo on Russian oil deliveries by sea.

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In response, Moscow offered a discount on oil, which India and China quickly snapped up. Both countries have increased their purchases in recent months.

While Europe may have found a replacement for Russian oil in the Middle East, Bloomberg analysts warn of the consequences if the oil embargo is not lifted by the end of the year.

The embargo includes a prohibition on insuring shipments of Russian oil to buyers worldwide, which Bloomberg reports could cause problems for overall oil shipments and increase competition for supplies from the Middle East.

Saudi oil import from Russia doubles

Saudi Arabia, the world's largest oil exporter, more than doubled the amount of Russian fuel oil it imported in the second quarter to feed power plants to meet summer cooling demand and free up the Kingdom's own crude for export as per trade data and analysis.

Russia has been selling fuel at reduced prices as a result of batches of draconian Western sanctions following the war in Ukraine. 

The increased sales of fuel oil to Saudi Arabia, which is used in power generation, highlight the challenges US President Joe Biden is facing as his administration seeks to isolate Russia and reduce its energy export revenues, not to mention courting MBS to increase Saudi oil output.

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