Total Goes on Mideast Oil-Buying Spree, Adding to Market Turmoil

TotalEnergies will cease importing Russian crude via the Druzhba pipeline into its 240,000 barrels-per-day Leuna refinery later this year. The move removes a direct Russian feed into a major German refinery, likely forcing substitution with alternative crude grades or seaborne imports and raising logistics costs. This could tighten regional crude flows and affect refining margins/spreads depending on the cost and availability of replacement barrels.

Analysis

TotalEnergies will cease importing Russian crude via the Druzhba pipeline into its 240,000 barrels-per-day Leuna refinery later this year. The move removes a direct Russian feed into a major German refinery, likely forcing substitution with alternative crude grades or seaborne imports and raising logistics costs. This could tighten regional crude flows and affect refining margins/spreads depending on the cost and availability of replacement barrels.