PODCAST: Ban on Russian refined products will hurt Europe more than oil restrictions

Will Beacham

07-Dec-2022

BARCELONA (ICIS)–The ban on Russian refined products such as naphtha from February 2023 will be more disruptive to the European chemical markets than this week’s EU restrictions on oil.

  • EU ban on Russian refined products from 5 February
  • Includes 600bbl/day gasoil, 200bbl/day naphtha imports Russia to Europe
  • Not easy to replace this material or for Russia to find new markets
  • Naphtha may stay long as European refineries run hard for gasoil
  • More than 2m bbl/day of delayed refinery capacity starting up, including 1m bbl/day in Middle East
  • More refineries may close in Europe, driven by energy transition, rising costs
  • Oil markets may return to real price discovery as paper market declines
  • China relaxes zero-COVID-19 policy, but economy may not benefit
  • INEOS places another big bet on China with new Sinopec joint venture

In this Think Tank podcast, Will Beacham interviews Michael Connolly, ICIS principal analyst for refining, ICIS Insight Editor Nigel Davis, ICIS senior consultant Asia John Richardson and Paul Hodges, chairman of New Normal Consulting.

Click here to listen to the podcast

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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