According to recent data from the BAFA foreign trade office, German crude oil imports rose 9.4% in the first 11 months of 2022 compared to the previous year. The increase in import volumes can be attributed to the recovering economy in Germany post-COVID-19 pandemic. Despite sanctions and higher prices, the country still imported 80.8 million tonnes of oil from January to November.
Major Suppliers of Oil to Germany
Russia remained the largest supplier of oil to Germany, accounting for 26.2% of the country’s imports in the given period. The sanctions imposed by the European Union and G7 countries in response to Russia’s invasion of Ukraine in February 2022, reduced the subsequent arrivals from Russia. However, imports from the British and Norwegian North Sea still contributed 23.3% to the total oil imports in Germany, while imports from OPEC member countries made up 17.5%. The remaining imports were from various sources such as Kazakhstan and the United States.
Impact of Sanctions on German Oil Imports
The effect of the sanctions and Russian counteractions on German oil imports is yet to be fully seen, as the BAFA releases the data with a few months’ delay. However, the total oil imports in Germany increased to 80.8 million tonnes from 73.9 million tonnes in the same period of the previous year.
Rise in Cost of Oil Imports
Despite the rise in import volumes, the cost of oil imports rose sharply as well. The country spent 56.6 billion euros, equivalent to $60.68 billion, on crude oil imports in the 11-month period, which was 77.4% more than the previous year. The average price paid per tonne at the border rose 62.3% compared to the same period in 2021, standing at 699.8 euros.
Global Oil Prices Fueled by Optimism in China
The global oil prices are currently strong, fueled by the optimism surrounding the recovering demand in China. The ban on Russian crude imports and the price cap set on Russian seaborne exports by the EU and G7 countries have only partially affected German oil imports. The country still relies on a diverse range of sources for its oil imports, which has allowed it to mitigate the impact of the sanctions.
In conclusion, despite the sanctions and rising prices, German crude oil imports rose 9.4% in the first 11 months of 2022, showing a recovering economy post-COVID-19 pandemic. Russia remained the largest supplier, but Germany imported oil from a diverse range of sources, which allowed it to mitigate the impact of the sanctions. The total cost of oil imports rose 77.4% in the given period, but the global oil prices are strong, fueled by the optimism around the recovering demand in China.