Indonesia, a former member of OPEC, is set to buy Russian crude First time More than a decade, according to anonymous sources who spoke to Reuters.
Indonesia’s Pertamina did not buy any crude from Russia following its February 2022 invasion of Ukraine, but has now added Sokol and Urals grade crude to its tender list for September 2024 purchases. According to Reuters, the last time an Indonesian oil company bought Sokol crude was 10 years ago.
It remains to be seen whether Indonesia joins China and India as buyers of Russian crude oil. According to a Reuters report, one of the tenders was said to have closed last week and the other on Monday, with the results yet to be announced.
Indonesia sees strong economic growth in 2024, overtaking Vietnam and the Philippines. This year, Indonesia’s domestic production of crude oil has fallen below 600,000 bpd, while its consumption has increased by more than 1.6 million bpd.
Despite its relatively neutral position in world politics, Indonesia Announced in 2022 Investigated buying cheap Russian crude, but the Vito government decided that buying Russian crude at a 30% discount to Brent prices was not worth the associated risks.
Increased oil imports affect Indonesia’s trade balance, with imports of crude and petroleum products increasing by 17 percent month-on-month in June 2024. High prices for both crude oil and petroleum products also affect the country’s trade balance. Star reports The value of oil imports in June 2024 increased by 47% year-on-year on the back of higher volumes and prices.
Despite the opportunity to buy discounted Russian barrels, Indonesia’s oil refineries are mostly used to process light crude, much of which is supplied by countries such as Saudi Arabia, Nigeria, Angola and Iraq.
Tom Cool for Oilprice.com
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