• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 36 mins Would bashing China solve all the problems of the United States
  • 2 hours Model 3 cheaper to buy than BMW 3 series.
  • 1 hour Thugs in Trumpistan
  • 5 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 3 hours Pompeo's Hong Kong
  • 4 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 2 hours Coronavirus hype biggest political hoax in history
  • 5 hours China’s Oil Thirst Draws an Armada of Tankers
  • 16 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 1 hour Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 15 hours Income report showing potential future spending and economic growth
  • 17 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 1 day COVID 19 May Be Less Deadly Than Flu Study Finds
Oil Market Could See Long Term Contango

Oil Market Could See Long Term Contango

The oil market could stay…

The $8 Trillion Megatrend Taking Wall Street By Storm

The $8 Trillion Megatrend Taking Wall Street By Storm

As COVID-19 continues to transform…

Rosneft To Sell Oil Products In Euros To Avoid Possible New U.S. Sanctions

The largest Russian oil producer and one of the world’s biggest, Rosneft, told customers earlier this month that oil product sales in tender contracts will be priced in euros instead of U.S. dollars, Reuters reported on Wednesday, citing five trading sources.

Rosneft’s move is seen by traders and analysts as a future hedge against potential new U.S. sanctions on Russia and/or its oil industry.

Rosneft has been on a list of sanctioned entities of the U.S. Department of the Treasury since 2014, when the U.S. and the EU imposed sanctions on Russia and Russian companies over the Russian annexation of Crimea. Those sanctions, however, don’t prohibit Rosneft accepting U.S. dollars as payments for the oil and oil product it sells.

Rosneft exports around half of the oil products its refineries in Russia produce. Most of the exported oil products are being sold via tenders to major international commodity traders or the trading units of oil majors. Trafigura, Vitol, Glencore, BP, and Cetracore are some of the top buyers of Rosneft’s oil products in annual, spot, or short-term tenders.

According to traders who spoke to Reuters, the goal of replacing the U.S. dollar with euros in future tenders—and this switch could be made as soon as this year—is to mitigate as much as possible future unpredictable U.S. sanctions on Rosneft.  

At the end of last year, Russia’s oil firms were said to be demanding penalty clauses and payments in euros instead of U.S. dollars in their annual renegotiation of oil supply contracts with Western crude buyers, as the Russian oil industry was seeking to protect itself from possible new U.S. sanctions on the sector.

According to an exclusive Reuters report in November 2018, buyers were unwilling at the time to yield to the Russian demands.

Last year, U.S. lawmakers discussed extending sanctions on Russia to energy and oil projects and sovereign debt markets in what Republican Senator Lindsey Graham called a “sanctions bill from hell.”   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News