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Russian oil finds alternative buyers while the world plunges into an energy shortage crisis

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Nonhlanhla P Dube

According to Reuters, a tanker carrying 700,000 barrels of Russian oil arrived in Cuba on Thursday, as Moscow seeks new clients.

The Liberian-flagged ship is owned by a subsidiary of the Russian maritime business Sovcomflot, which is now sanctioned in the United Kingdom, Canada, and the United States. The shipment is worth approximately R1.196 billion at current pricing.

As Western sanctions target its oil exports, Russia has sought alternate markets. Cuba normally relies on Venezuela for oil imports but has been forced to make more expensive spot market purchases as Venezuela is one of a number of countries trying to increase supply to meet its own demand.

Brazil also signaled this week that it would welcome Russian shipments and that its diesel would be utilized to help farmers and drivers. In reality, Russia has quickly become one of Latin America’s top oil suppliers.

And, despite recent drops in crude prices due to recession fears, Russia continues to benefit from high prices even as its own output remains uncertain. Despite sanctions imposed in reaction to its invasion of Ukraine, Moscow is still making billions from oil sales.

On the other hand, the chairman of the International Energy Agency said the unprecedented global energy crisis facing the global economy is likely to worsen in the coming months.

Fatih Birol, speaking at a global energy meeting in Sydney on Tuesday, stated, “The world has never witnessed such a major energy crisis in terms of its depth and complexity.”

“We might not have seen the worst of it yet,” he added, “but this is affecting the entire world.”

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
Tags: Russia
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