Russian Energy Minister Nikolai Shulginov said that the country was willing to sell its oil at almost any price to friendly nations as the world's top oil trader is set to stop buying Moscow's supply over its continued invasion of Ukraine.
The official commented on oil price forecasts by saying that authorities will soon revise them in light of the changes in the geopolitical and economic situation. Furthermore, Shulginov said while a price range of between $80 and $150 per barrel of crude was possible, Russia was willing to negotiate other prices because its priority was keeping its oil industry running.
Russian Oil Price
In a separate interview, the official commented on news regarding foreign companies planning to exit from the Russian energy industry. Shulginov said that that situation was, for now, only hypothetical and not a reflection of the truth. He said that he first needed to find a buyer for the Russian businesses, as per OilPrice.
The Russian energy minister's remarks suggest that sanctions, although not directly targeting the country's oil industry, have begun affecting the economy. The sanctions have resulted in lower sales, potentially forcing Moscow to shut down wells due to running out of storage space and new facilities are constantly being built quickly.
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The chair of the Russian State Duma's committee on energy, Pavel Zavalny, previously identified China and Turkey as two nations that Moscow still considered "friendly." On the other hand, China and India still continue to buy shipments from Russia despite Western sanctions.
According to the New York Post, the West is struggling to severely cut off Russia's oil exports due to the European Union's heavy reliance on the supply. Russian President Vladimir Putin is now requiring Western countries who want to purchase its oil and gas supply to pay for them in rubles, the country's currency.
Avoiding Moscow's Energy Supply
The situation comes as the Vitol Group, the top oil trader in the world, indicated it would stop trading Russian crude oil and products by the end of the year. Furthermore, the Dutch energy and commodities trading company plans to not enter any new Russian crude and product transactions, a source with knowledge of the situation said.
The company declined to comment on the issue other than confirming the accuracy of an article that was published beforehand talking about the decision. Since Russia's invasion of Ukraine on Feb. 24, several countries have announced bans on Russian oil, including the United States, the United Kingdom, Canada, and Australia.
Several major companies, such as Shell, TotalEnergies, and Nestle, have also stopped purchasing Russian crude or plan to do so by the end of the year. A wider de facto embargo has also taken place as banks, traders, shippers, and insurance companies are trying to avoid falling foul of Western financial sanctions.
Western sanctions have caused Russian oil to become toxic for many buyers, forcing its benchmark Urals crude to be traded at an even wider discount on the world market. It is now worth $34 per barrel less than Brent crude, CNN reported.
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