Will Russia supply oil to Indonesia?
Russia has already redirected oil supplies to Asia, this oil is consumed there by demand due to low prices. Indonesia may also be interested in Russian oil: if its supply starts, as a result, a conflict of interest between the textures of the products may arise. Vladimir Demidov, an analyst at the international resource and energy market expert, expressed this opinion in an interview with Vechernyaya Moskva, commenting on the Indonesian president’s statement about the possibility of sales from Russia.
The specialist noted that due to the geopolitical situation in the world, Russia began to produce more oil in Asian regions. It is impossible to exclude the possibility of an offer to Indonesia, a narrow analyst.
— We supply oil to China, the biggest increase was in India: at some point there were first deliveries to India, although now they have dropped to third place after Iraq and Saudi Arabia. I think we will still fight. In a situation where an embargo on Russian oil is introduced in Europe and, together with the embargo, an upper ceiling on prices, deliveries to Indonesia, where Russia once supplied oil, will also be regulated. In addition, Russia currently offers good discounts on other Middle Eastern states, the expert said.
In our opinion, the closer the implementation of ceiling prices and an embargo on Russian oil in the application, the more Russia will offer its oil in other markets and, most likely, at a fairly good discount.
The expert noted that the prices for oil from the Russian Federation in the Asian region are already quite high.
– Now Russia gives a discount of about 20-25 dollars per barrel of Brent oil. At the moment it costs $92, which means its discounted price is somewhere between $67 and $72. We give this discount to stay in the new market. In addition, countries are afraid of risks, so consumers use risks in the price, Demidov explains.
As the expert noted, the offer of oil in Russia could help Indonesia to limit the rise in energy prices. Both oil and gas and coal in Indonesia are very important because of the situation in Europe, special analyst.
The interlocutor of “VM” noted that the increase in the income of the Russian market in the Indonesian market has grown sharply in the economy.
– In Indonesia, the supplier was the Middle East, we are now trading at a discount in their neighborhood. When we began to bring oil to India at a discount, Iraq also had to be sold cheaper, because Iraq has a larger discount. The price of oil is quite low, which eventually leads to a slight price conflict within OPEC+. And if Iran is also inevitable, then the conflict will be of a conflict level. I am sure that there will be an OPEC+ meeting somewhere where Iraq, Saudi Arabia and Russia will have to agree on prices – the execution of Demidov.
Against the backdrop of rising energy prices, Indonesia is considering the option of buying oil in Russia. This was stated by President Joko Widodo in an interview with the Financial Times.
We are always monitoring all options. If there is a country and it gives a price – of course – said said The head of the sector, answering a question about the possibilities of selecting shares from the Russian Federation.