The US sanctions against Russia's two largest Oil companies announced by US President Trump two weeks ago are now apparently also having an impact on Russia's seaborne crude Oil exports, Commerzbank's commodity analyst Carsten Fritsch notes.

Russia is likely to continue bringing its Oil to market

"According to data from Bloomberg, these fell by 20% to just over 3 million barrels per day last week, the lowest level in 10 weeks. There were sharp declines from ports on the Pacific and in the Arctic. Shipments from ports on the Baltic Sea and the Black Sea did not fall quite as sharply."

"The less volatile 4-week average fell to 3.58 million barrels per day, but remained at a relatively high level. Russia has apparently been exporting more crude Oil than it has buyers. Bloomberg reports that the amount of Russian Oil stored in tankers has risen to 380 million barrels. It is still too early to say how big the impact of US sanctions on Russian Oil supplies will ultimately be."

"Experience in recent years shows that Russia is likely to find ways and means to continue bringing its Oil to market."