Rosneft issues rare tender to sell prompt Russian crude – sources

Russia’s top producer Rosneft has issued a rare tender to sell to Asia prompt cargoes of Sokol crude exported from Sakhalin fields, trade sources said, a sign of urgent sales as its supplies pile up.

The producer offered three 700,000-barrel cargoes for loading on May 7-10, 14-17 and May 27-June 1, they said.

Russian oil producers face growing difficulties in selling cargoes as refiners and trading companies avoid dealing with the supplies for fear of Western sanctions, imposed over the Russian invasion of Ukraine, which Moscow calls a “special operation”.

Rosneft rarely sells crude through tenders as most of its oil has already been committed to trading companies such as Vitol and Trafigura under long-term financing schemes, the sources said.

Also, the timing of the cargoes being offered is prompt and out of the usual trading cycle, as Asian refiners have already completed May-loading crude purchases last month, they said.

One of the sources said the tender would close on April 21 at 2 p.m. Moscow time (1100 GMT) and stay valid until 10 p.m. on April 26.

Rosneft may also have issued a separate tender to sell as many as seven ESPO Blend crude cargoes loading in May, traders said, although this could not be independently verified.

Rosneft could not be immediately reached for comment outside office hours.
Source: Reuters