Bloomberg reported that Saudi Arabia and Iraq are working to divert more and more of their crude oil to Europe in an attempt to help refineries on the old continent that are desperate to cut off supplies from Russia.
In the first three weeks of July, more than a million barrels of crude oil per day flowed from the Middle East to Europe from the Middle East through the pipeline from Egypt in the first three weeks of July, more than twice as much as a year ago, according to the agency.
The agency has indicated that supplies from Saudi Arabia dominate pipeline flows, but Iraq is also increasing supplies and companies can either supply via a pipeline called “SUMED” that traverses Egypt or, if its vessels are small enough, it can be ferried directly through the Suez Canal, through which Iraqi cargo is transported.
And pipeline exports rose from about 800,000 barrels a day the previous month to their highest level since April 2020.
In addition to these flows, about 1.2 million barrels per day were sent towards the channel from the Persian Gulf in the first three weeks of July, mainly from Iraq.
This could increase the total flow from the Middle East to Europe to 2.2 million barrels per day, up almost 90% since January, just before the Ukraine crisis.
The shift comes as volumes of Russian crude increase in the opposite direction, from Baltic and Black Sea ports to buyers in India and China.
It is unclear whether flows from the Middle East to Europe are sustainable, and a European Union embargo on Russian oil should come into effect later this year.
Source: El Nashra