Russia: EU oil products embargo will further unbalance energy markets

<html xmlns=""><head><title>UPDATE 1-Russia: EU oil products embargo will further unbalance energy markets</title></head><body>

Adds quote, details

MOSCOW, Feb 3 (Reuters) -The Kremlin on Friday said an EU embargo on Russia's refined oil products thatwill come into force on Sunday would further unbalance global energy markets.

The ban is the latest stage of Brussels' plan to cut the vast majority of Russian energy supplies to the 27-member bloc, and reduce the billions of dollars that Moscow earns globally from its hydrocarbon sales.

"Naturally this will lead to further imbalance in the global energy markets," Kremlin spokesman Dmitry Peskov said, when asked about the likely impact.

"But we are taking measures to hedge our interests from any risks that arise," he added, without providing details.

Russian officials have said they will not sell oil to any country that abides by a $60-a-barrel price cap on purchases of Russian oil imposed by the European Union, the Group of Seven major economies and Australia.

Russia's Urals blend of crude oil URL-E has traded at a steep discount to the benchmark Brent blend LCOc1 since the EU's embargo on Russian crude came into effect last December. Refined products such as diesel and fuel oil sell at a premium to crude.

India and China, which have not imposed sanctions on Moscow for sending its armed forces into Ukraine, have stepped up their purchases of cheaper Russian oil over the last year as Western countries have drastically cut their imports.

Reporting by Reuters; Editing by Kevin Liffey


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.