Europe ‘Overfed’ on Russia Oil

The head of Russia’s pipeline monopoly said in an interview published Monday that Europe was “overfed” on Russian oil and that a new oil pipeline to Asia would see a portion of supplies diverted from Europe.

By diversifying its markets, Russia could raise the price of its Urals blend of crude for the ferociously competitive European market, Semyon Vainshtok of OAO Transneft said. Analysts say the blend now is sold as much as US$7 (euro6) cheaper than other similar-quality blends.