European refineries have been forced to pay more for oil after Russian shipments to the continent reportedly fell to a 10-year low.
Russia is expected to ship just 2.1million barrels of oil a day to Europe this month as its own refining industry gathers pace and demand increases in China.
European refineries are now facing higher costs for their supplies, having already suffered a squeeze after EU states stopped oil imports from Iran on the back of US sanctions.
Russian exports to Asia have climbed to nearly 500,000 barrels per day in recent years, while the country’s refineries are now processing 5million barrels a day, up 25% since 2005.
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