The Wall Street Journal reports, Russia's energy sector is pivoting to Asia, with oil exports to the region jumping to record highs. Analysts predict a boost for some Asian energy companies.
The Wall Street Journal’s estimates show, Russia has sent more than 30% of its oil exports—more than 1.2 million barrels a day—to Asia this year. Around a fifth of Russia's oil exports went to Asia-Pacific in 2012, according to the International Energy Agency.
Meanwhile, Russian oil exports to Europe via its largest pipeline network have fallen from a peak of 3.72 million barrels a day in May 2012, to less than three million barrels a day in July 2014. Such a shift in export markets of Russian oil brings benefits both for Russia and Asia. Despite the fact that Russian crude oil is priced slightly above the Dubai benchmark, it is advantageous for Asian buyers. On the plus side, the Russian supplier is relatively close. Besides, Asian customers can diversify their oil supplies from the conflict-stricken Middle East.
