MOSCOW: A growing number of fuel-dependent Asian countries are seeking to secure Russian oil supplies as disruptions caused by the Iran war constrain global energy flows, raising concerns that demand could outpace available supply.
Countries including Vietnam, Thailand, the Philippines, Indonesia and Sri Lanka have recently shown increased interest in Russian crude, joining major buyers such as India, China and Turkey. Since the Ukraine war led European nations to reduce reliance on Russian energy, India and China alone have accounted for nearly 80% of Russia’s oil exports.
Kremlin spokesman Dmitry Peskov acknowledged the rising demand, noting that increased interest from alternative markets could soon make it difficult for Russia to meet additional supply requirements.
The surge in demand comes as the ongoing US-Israel-Iran conflict has disrupted global oil routes, effectively blocking a significant portion of global oil supply due to halted traffic through the Strait of Hormuz—through which nearly one-fifth of the world’s oil production typically passes.
Russia has benefited from elevated oil prices and a temporary 30-day sanctions waiver from the United States for seaborne purchases. Oil and gas revenues account for roughly a quarter of Russia’s state income.
However, Moscow’s ability to scale up exports remains constrained. Ukrainian drone attacks have reportedly disrupted up to 40% of Russia’s oil-exporting capacity, limiting its ability to fully capitalize on rising global demand.
Recent transactions highlight the shift: the Philippines has resumed Russian oil imports after five years, purchasing two ESPO Blend cargoes totaling around 1.5 million barrels. The shipments were delivered to Limay port, serving the Bataan refinery.
Thailand has also initiated discussions with Russia regarding potential crude purchases, signaling a broader regional pivot toward alternative energy sources amid ongoing geopolitical uncertainty.
The evolving situation underscores a tightening global oil market, where shifting alliances and supply disruptions are reshaping traditional trade flows and intensifying competition for available energy resources.
Story by Reuters
