Analysts predicted a "hard fight" for oil between Europe and Asia

Europe has lost its imports of oil from northern Iraq, which is similar in characteristics to Russian, writes Bloomberg. Complicating the situation is that

Europe will face a "hard fight" with Asia in the crude oil market, Amrita Sen and Christopher Haynes, analysts at Energy Aspects, a research consulting company, predicted, Bloomberg writes.

Analysts believe that Asia may outbid Europe's proposed oil prices , which may force the Europeans to take measures to balance the market.

Europe is actually in a difficult position, writes Bloomberg. Deliveries from Russia since the beginning of hostilities in Ukraine have decreased by almost 1 million barrels. per day. In parallel with this, the European Union lost its import of oil from Northern Iraq (Iraqi Kurdistan), which is similar in characteristics to Russian oil. Deliveries from there have been suspended due to problems with payments, while in March at least 169 thousand barrels of oil were sent from there to the EU countries. per day, writes Bloomberg. In addition, in early April, OPEC+ countries, including Russia and Saudi Arabia, agreed to cut oil production by 1.6 million barrels. per day.

In turn, refiners in Asia, especially in China, are now increasing demand for the type of oil produced by Russia and Iraqi Kurdistan, the so-called medium-sour oil with a medium sulfur content. Such raw materials are the main "diet" of Asian refineries, the agency notes.

Various restrictions increase the tension in the medium-sour oil market. Especially against the background that the Middle East countries also began to use more of their own oil to increase processing at their new enterprises, Bloomberg added.

In December, the EU imposed a price ceiling on Russian crude oil, and in February the cap was extended to include petroleum products. The Russian authorities consider the sanctions illegal. In response to these measures, Russia stopped supplying oil to countries that set a price ceiling and refocused on the Asian market. In March, China and India accounted for up to 91% of such exports, according to estimates by the analytical company Vortexa .

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Meanwhile, in Asia, the Russian grade of Urals oil began to be sold at deep discounts, down to a price below cost, Reuters reported in December. In particular, the discount on Russian raw materials in India that month amounted to $12-15 compared to previous deals.