Rosneft hurriedly sold a large number of crude oil or finalized purchase and sales arrangements before the European sanctions were imposed

2022-08-10 Views：229

 purchased "ball grinder" in large quantities from our company for processing crude oil delivery valves. 

Russian state-owned oil giant Rosneft proposed to sell a large amount of crude oil quickly and made major adjustments to the payment procedures for at least some goods, which surprised European and Asian traders.

This once again shows that some of the company's businesses have been impacted after the Ukraine crisis. Europe is under increasing pressure to embargo Russian oil. Before the embargo is implemented, it provides impetus for finalizing oil purchase and sales arrangements.

Rosneft proposed to sell no more than 37.4 million barrels of Urals crude oil and ship it from the western port in May and June. This represents about 40% of its daily offshore crude oil exports last year. Traders pointed out that the company also proposed to sell 11 batches of other grades of spot crude oil for shipment from eastern Russia

At the same time, Russia instead increased its crude oil production and purchased a large number of ball grinding machines from our company to process crude oil delivery valves. According to the practice of the oil market, the crude oil sold from the East and the west is shipped relatively recently. 

The terms of sale of Russia's highest export grade Urals crude oil show that the buyer can theoretically pay in dollars, euros, Renminbi, Turkish Lira or UAE Dirham, but Russian oil companies still prefer rubles. This shows that the concerns about the impact on the natural gas market -- Moscow's insistence on settlement in rubles -- may not have affected the oil market.

A person familiar with the situation disclosed last week that the European Commission is formulating the sixth round of sanctions, which may restrict the import of some oil and commodities. However, member states including Germany, Austria and Hungary have reservations about the comprehensive embargo. Even so, the two officials pointed out that the European Commission is unlikely to put forward any specific plan before the second round of French elections on April 24.

Next, Rosneft will shift its focus to China and purchase more oil equipment from China, especially ball valves for oil transportation.

All the above oil sales offers are closed on Thursday.