Turkey’s Tupras Resumes Buying Russian Urals Crude Amid Falling Prices
Turkey’s largest oil refiner, Tupras, has made a significant decision to resume purchasing Russian Urals crude cargoes after halting imports earlier this year due to heightened U.S. sanctions on Moscow. This move comes as prices for Urals crude dropped to their lowest levels since 2023, falling below the G7 price cap of $60 a barrel.
The price cap, enforced by the Group of Seven countries, the European Union, and Australia, restricts the use of Western maritime services for tankers carrying Russian oil priced at or above $60 a barrel. The U.S. Treasury Department has also imposed sanctions on multiple tankers suspected of breaching this price threshold, adding pressure on buyers like Tupras.
Tupras, which became one of the top importers of Russian crude after the Ukraine invasion in 2022, had stopped purchasing Russian oil in February amid growing concerns about escalating U.S. sanctions. However, the recent drop in Urals crude prices has prompted Tupras to reconsider its stance and resume imports.
According to trading sources, Tupras is set to receive at least two cargoes of Urals for April loading, with one cargo already en route. The Nissos Christiana loaded approximately 730,000 barrels of Russian Urals crude from the Baltic port of Ust-Luga on April 3, destined for delivery to Tupras’ refinery in Izmit on April 21.
With two refineries in Izmit and Izmir boasting a combined crude processing capacity of 467,300 barrels per day, Tupras plays a crucial role in Turkey’s energy sector. In the absence of Russian imports, Tupras had diversified its crude sources, including purchasing Brazilian crude for the first time last month.
Aside from Russian and Brazilian crude, Tupras has also been importing oil from countries like Guyana, Nigeria, Libya, and Norway, as per data from Kpler. This strategic diversification ensures a steady supply of crude for Tupras while navigating the complex geopolitical landscape of oil trading.
As Tupras navigates the challenges of international sanctions and market dynamics, its decision to resume Russian crude imports underscores the complex interplay between geopolitics and energy markets. The company’s ability to adapt to changing circumstances highlights its resilience and strategic foresight in a volatile industry.
Overall, Tupras’ latest move to resume Russian crude imports marks a significant development in the energy landscape, reflecting the intricate web of factors that influence global oil trade.
(Article Source: Reuters)