MOSCOW, Feb. 18 (UPI) -- The opening of the East Siberia-Pacific Ocean pipeline is causing major oil-producing nations to shift their attention to Asia, energy traders said.
Russian Prime Minister Vladimir Putin inaugurated the ESPO oil pipeline during a ceremony at the Kozmino oil terminal Dec. 28, calling the "strategic project" a victory for Moscow.
ESPO travels from Eastern Siberia to send Russian oil to China. Combined, ESPO could move nearly 600 million barrels of oil to Asian markets each year.
Gulf states are looking at ways to make up for the shift east as U.S. markets look elsewhere for energy supplies, The Wall Street Journal reports.
Jorge Montepeque, a market analyst for Platt's, told the Journal oil producers need to take steps to protect their interests as ESPO crude enters the market.
"Producers that supply the market on long-term contracts are taking steps to counter ESPO," he said.
Russian oil producer Gazprom Neft said the first cargo of oil was delivered to Japan's Mitsubishi through ESPO starting Jan. 30.
