Russian Energy Week (REW) 2023 to focus on restructuring the global oil market through trade and logistics

Moscow will play host to the Russian Energy Week International Forum (REW 2023) which will held on 11-13 October. The prospects for energy cooperation between Russia and the world's greatest growing economies, including China, India, and the African nations, will be discussed by the attendees. The effect of the reorganisation of transport and logistics corridors on the world energy sector is one of the main subjects of the forthcoming Forum.

"A significant structural transformation is taking place in the global oil trade. The Middle Eastern nations, who once contributed significantly to the supply of commodities to the developing economies of East Asia, are now expanding their oil exports to Europe. In response, Russia has dramatically boosted its oil shipments to China, India, and certain other nations in the Asia Pacific.

Additionally, Latin American countries, including Brazil and Guyana, with a commensurate shipment distance to Europe and Asia Pacific countries, are playing an increasing role in the oil market,” said Anton Kobyakov, Adviser to the President of the Russian Federation and Executive Secretary of the REW 2023 Organizing Committee.

Stating that the global oil market continues to try to adapt to the current geopolitical events, “Russian oil, despite the restrictions imposed, enters various markets with a changed price structure. Logistics have become more complicated and expensive, as oil tankers have to travel long distances to deliver raw materials and petroleum products.

The impact of these shifts on the future of the oil market will be one of the most important topics of the upcoming Russian Energy Week,” Kobyakov added.

The largest importers of Russian refined products in August 2023 were Turkey, India, and the UAE. These three countries accounted for 46% of marine supplies from the Russian Federation (1.04 million out of 2.27 million b/d). The role of Brazil, China and Malaysia is becoming increasingly significant: These regional consumers accounted for a total of 18% (397,000 b/d) of the total structure of Russian oil products supplies.

Singapore, which is actively developing its oil product hub, accounted for another 7% of the Russian Federation’s refined products shipments (152,000 b/d) in August. Greece and Malta also play a notable role: Transshipment of petroleum products takes place in the territorial waters of these EU countries, making the total share of these countries in exports in August 2023 8% (191 b/s).

“The restructuring of logistics flows is not just a beautiful slogan, but a solid fact. For example, in August 2023, the top 20 leading importers of petroleum products from the Russian Federation included 9 African countries: Algeria, Ghana, Egypt, Libya, Morocco, Nigeria, Senegal, Tunisia, and Togo. The volume of marine supplies of petroleum products from Russia to these countries reached 411 thousand barrels per day (b/d), and their share in the structure of Russian exports amounted to 18%,” says Igor Yushkov, an expert from the REW Energy Club.

In general, according to Igor Yushkov, the volume of offshore supplies of oil products from Russia has decreased by about 780,000 b/d over the past few months. This is primarily due to Russia’s commitments to reduce oil production under the OPEC+ deal.

Supported by the Moscow City Government, the Russian Energy Week International Forum is organized by the Ministry of Energy of the Russian Federation and the Roscongress Foundation, which is a socially oriented non-financial development institution and a major organizer of conventions, exhibitions and business, public, youth, sporting, and cultural events.