Russia Supplies Oil to Various Markets by Providing Discounts - Aramco CEO

MOSCOW (Pakistan Point News / Sputnik - 26th October, 2022) Russia hqs been able to supply its oil to various markets by providing discounts, while the global oil market is in the process of reorganization, the head of Saudi Aramco, the world's top oil exporter, Amin Nasser said on Wednesday.

"Oil is fungible commodity. Russians, with the right discounts, they are able to place their crudes in different markets and crude that are supplied in Asia for the time being, are redirected, some of it, to Europe and North America and other parts of the world. So, realignment is happening," Nasser said during a panel discussion at the Future Investment Initiative summit in Riyadh.

According to Nasser, the discounts that Russia uses in oil trading help Moscow to overcome difficulties related to insurance and oil delivery services.

"There is logistical issues I have to say, insurance issues, but this is being handled with the right discounts," Nasser added.

In response to Russia's military operation in Ukraine, the European Union announced a ban on the provision of services and insurance for Russian oil supplies around the world, as well as a partial embargo on Russian oil. The restrictions are due to come into force in December this year for seaborne imports of Russian crude and in 2023 for petroleum products.

In early October, US Treasury Secretary Janet Yellen said that the G7 countries, the European Union and Australia were still trying to determine a suitable price cap to place on Russian oil. She suggested that a price cap in the $60-a-barrel range would likely be sufficient to reduce Russia's energy revenues while allowing oil to continue to flow into the global market.

Russian President Vladimir Putin has said Moscow will not supply oil to countries that choose to impose the price cap.