Fuel-thirsty Asian nations line up for Russian oil

MOSCOW: Asian ​countries including Vietnam, Thailand, the Philippines, Indonesia and Sri Lanka are lining up ‌to buy Russian oil as the Iran war blocks supplies, raising the possibility that demand may exceed supply, several sources including Russia said.

Since the war in Ukraine prompted European customers - once the biggest buyers of Russian oil and ​gas - to shun Moscow, India and China have accounted for around 80 per cent of ​Russian oil exports. Turkey has also been a significant buyer, Reuters reported.

But in recent weeks, a host of Asian countries have been lining up, according to various sources including media ​and Russia.

“Demand is high, particularly for alternative destinations. As a result, a point may come when ​it becomes difficult to meet additional demand,” Kremlin spokesman Dmitry Peskov said in response to a question about Russian

oil demand. A fifth of global oil production has effectively been blocked from reaching the market due to ​the US-Israeli war on Iran which has halted traffic through the Strait of

Hormuz.

Russia has benefited ​from high oil prices and a 30-day sanctions waiver from the United States for purchases of Russian oil at ‌sea.

Oil revenues and natural gas sales generate around a quarter of the country’s state funds.