Some Asian countries are taking Russian oil for the first time in years after the U.S. waiver allowed purchases of Russian oil on tankers to ease the major oil supply shock to the market.
The Philippines, one of the Asian nations worst hit by the Middle East supply squeeze and where a national energy emergency is already in place, imported its first cargo of Russia’s Far Eastern crude grade ESPO for the first time in six years, according to vessel-tracking data compiled by Bloomberg.
South Korea is also importing a shipment of naphtha from Russia amid shortages of the key petrochemicals feedstock. The first Russian shipment of naphtha this year has arrived at the Daesan port in Korea, per Bloomberg’s data.
Sri Lanka is also seeking Russian supply, while Indonesia, Southeast Asia’s largest economy, isn’t ruling out Russia as a supplier, with officials saying “all countries are possible” partners.
“When you don’t have any other options, all options are on the table,” Putra Adhiguna of Jakarta-based Energy Shift Institute told The Associated Press.
Japan has said it could consider Russian oil, but Moscow has signaled it wouldn’t sell to countries supporting the price cap on Russian oil, which Japan does.
The U.S. waiver on sales of Russian oil until April 11 for cargoes loaded before March 12 has spurred a competition in Asia for Russia’s oil. Refiners in India, which had steered clear of Moscow’s crude for months until the end of February, are now snapping up Russian cargoes, outbidding Chinese competitors.
The U.S. waiver is a boost to Russia’s oil revenues, which have jumped in recent weeks as the Russian oil is now selling for $100 per barrel and higher.
The U.S. has also cleared for sale Iranian barrels on water, in a highly unusual move to ease the upward pressure on international oil prices and U.S. gasoline prices.
However, uncertainties about shipping, insurance, payments, and currencies in buying Iranian oil have deterred Asian refiners from looking to buy Tehran’s crude.
By Tsvetana Paraskova for Oilprice.com
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