Pakistan has made its first purchase of Russian crude oil as a trial run.
The Russian crude oil is being sold to Pakistan at a discount of up to $18 per barrel, with payments made in Chinese Yuan.
According to analytics firm Kpler, Pakistan purchased 154,000 barrels of oil per day in 2022, which remained stable from the previous year. The majority of the crude came from Saudi Arabia, the world’s largest supplier, and the United Arab Emirates.
If Russian oil production were to increase to 100,000 barrels per day, Pakistan’s Middle Eastern suppliers may face a significant reduction in demand.
Officials stated that Pakistan will scrutinize the petroleum products derived from refined Russian oil. Despite the fact that the quality of Russian oil is not particularly exceptional and its transportation costs are high, Russian officials have granted Pakistan a discount of 16 to 18 dollars per barrel to match the quality and freight of Arab light oil.