Russia to sell 80% oil to ‘friendly’ countries

Oil edges higher as market weighs Russian supply cuts amid demand fears

MOSCOW/ HOUSTON:

Russia plans to sell more than 80% of its oil exports to what it calls “friendly” countries in 2023, Deputy Prime Minister Alexander Novak said on Monday, referring to countries that have not sanctioned Moscow over its invasion of Ukraine.

He added that these countries would also receive 75% of Russia’s refined oil products and that Moscow continued to look for new markets.

Russia has stepped up discounted sales to China and India, in particular, since it was hit by Western sanctions and a G7 price cap designed to limit its ability to finance the war in Ukraine from oil revenues.

Novak also warned of uncertainty in global oil markets, saying Western countries from the OECD group, which includes the United States, Canada and Norway, could release their strategic oil reserves.

Meanwhile, oil prices edged higher on Monday, rebounding from early losses as investors weighed Russian plans to cut crude production and short-term demand concerns ahead of US inflation data. Brent futures for April delivery rose 30 cents, or 0.4%, to $86.69 a barrel, by 17:35 GMT. US crude rose 58 cents, or 0.7%, to $80.30 per barrel gain.

Oil prices had risen on Friday to its highest in two weeks after Russia, the world’s third-largest oil producer, said it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against Western curbs imposed on its exports in response to the Ukraine conflict.

Published in The Express Tribune, February 14^th, 2023.

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