Russia's top oil producer is holding back on signing new six-month contracts with two Indian state refiners because it has already committed supplies to other buyers, Reuters reported on June 8, citing three sources with knowledge of the matter.
"They are saying they don't have volumes," one of the sources told Reuters. The source described Rosneft as being "non-committal" about signing new deals.
The development points to demand for Russian oil even amid hard-hitting sanctions and boycotts against the country over its invasion of Ukraine.
Indian refiners are among those who have been snapping up Russian oil that was priced at steep discounts to move the supplies. But Russian oil is not being sold at steep discounts anymore, particularly as insurance and freight rates have risen, Indian sources told Reuters. India can still buy Russian crude on the spot market, but it would be more expensive than longer-term deals. China has also been snapping up Russian oil. Neither country has condemned Russia's actions in Ukraine.
To meet Asian demand, Russia has increased shipments by about 20% out of the major port of Kozmino in the east of the country, Reuters reported on Tuesday, citing three sources familiar with the matter.
Russia's energy sales are keeping the country afloat amid international trade restrictions as oil prices have been soaring, gaining about 50% this year so far. Moscow could still rake in $800 million a day from oil and gas revenues this year, Bloomberg Economics reported last week. That's 20% higher than the country's oil and gas takings in 2021.
State-owned Rosneft posted record profits in 2021 and is planning to dole out record dividends to shareholders.
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