No Takers For Latest Russian Oil Sale

FILE PHOTO: A logo of Russian state oil firm Rosneft is seen at its office in Moscow. © Reuters/Maxim Shemetov 

OilPrice.com: Rosneft Sale Tender Fails After Demand For Rubles For Oil 

Russia’s state-controlled oil giant Rosneft has failed to place 6.5 million barrels of various Russian crude blends loading in May and June after demanding rubles and 100-percent pre-payment from buyers, Reuters reported on Monday, citing five traders with knowledge of the tender process. 

There were no bidders for Urals, Siberian Light, Sokol, and ESPO crudes that Rosneft was trying to sell. Not even Indian state refiners bid to buy that oil because of “one-sided” terms of the tender, two of the sources told Reuters.  

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Update #1: Russia's biggest state-run oil producer failed to sell 37 millions of barrels of crude as companies self-sanction amid war in Ukraine (Insider) 

Update #2: Russia’s Rosneft Fails to Award Big Oil Tender With Buyers Wary (Bloomberg)  

WNU Editor: It is not paying for this oil in rubles that is stopping buyers from purchasing Russia oil. The problem is that Russia for the first time wants to be paid up-front .... Russia's Rosneft seeks pre-payment in roubles for oil products (Reuters). 

IMHO no one is going to buy this oil with this payment up front condition because no one knows what is going to happen next when it comes to Russian sanctions. The last thing that a customer wants to see is paying for an oil shipment up front, and then seeing this cargo seized on the ocean by a US or NATO warship because it is violating sanctions.