Russia has offered to sell crude oil to Bangladesh

[rainbowrascal]

Russia has offered to sell crude oil to Bangladesh, said State Minister for Power, Energy, and Mineral Resources Nasrul Hamid.

He made the disclosure while talking to journalists at the Bidyut Bhaban in Dhaka on Monday.

"However, there are some issues regarding the payments.

"We will move forward with oil import when a solution is found," the state minister added.

At present, the country imports around 91% to 92% of its fuel demand while the rest is sourced from local gas fields in the form of condensate, a bio-product of gas.

The Bangladesh Petroleum Corporation (BPC) has a storage of one month -- equivalent to six lakh tonnes of fuel -- at major land and riverine depots across the country.

BPC increased prices (Tk15/liter) of diesel and kerosene in the backdrop of price increase in the international market for petroleum at $85 per barrel (158.99 liters) in November last year.

In December, 2021, the demand for fuel oil in Bangladesh was approximately 63 million tonnes.

Meanwhile, oil prices in the international market rose in early trade on Monday with US fuel demand, tight supply and a slightly weaker US dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown fuelled worries about a sharp slowdown in growth.

Brent crude futures rose 82 cents to $113.37 a barrel at 0126 GMT, while US West Texas Intermediate (WTI) crude futures climbed 69 cents, or 0.6%, to $110.97 a barrel, adding to last week's small gains for both contracts.

A weaker US dollar also sent oil higher today (May 23), as that makes crude cheaper for buyers holding other currencies.

Market gains have been capped, however, by concerns about China's efforts to crush Covid with lockdowns, even with Shanghai due to reopen on 1 June.

Lockdowns in China, the world's top oil importer, have hammered industrial output and construction, prompting moves to prop up the economy, including a bigger-than-expected mortgage rate cut last Friday.

The European Union's inability to reach a final agreement on banning Russian oil for its invasion of Ukraine, which Moscow calls a "special operation", has also stopped oil prices from climbing much higher.

 

[Clutch]

Well at least Bangladesh isnt Beggars can't be Choosers.

 

[mb444]

BD should put forward buy as much as it can. Russians want to sell it for cheap we should take advantage. EU is carrying on, china is carrying on, india is carrying on...no one going to care if we do.

 

[Beast]

Bangladesh shall ask EU why India is exempt from sanction if they want others to follow.

 

[Bengal71]

BD should put forward buy as much as it can. Russians want to sell it for cheap we should take advantage. EU is carrying on, china is carrying on, india is carrying on...no one going to care if we do.

Those are countries with far greater influence and diplomatic power. BD needs to probe first whether we would be able to get away with it just like India, EU or China. If we can then by all means we should do it. But if our exports are affected we should not. Besides I am not sure how much storage capacity we have. If we had say 6 months of storage capacity we could buy and store and save heaps of money. If we don't then it's not going to be very beneficial.

 

[UKBengali]

Those are countries with far greater influence and diplomatic power. BD needs to probe first whether we would be able to get away with it just like India, EU or China. If we can then by all means we should do it. But if our exports are affected we should not. Besides I am not sure how much storage capacity we have. If we had say 6 months of storage capacity we could buy and store and save heaps of money. If we don't then it's not going to be very beneficial.

EU is not really in any position to "punish" BD.

It has enough inflationary pressures and taking a massive garment supplier out of their supplier mix would mean that they would have to pay greater costs for alternative supplier, and there would be delays. You cannot just ramp up production immediately

Like you say if BD hasthe storage capacity then it should go for it. BD can save hundreds of millions of US dollars by buying Russian oil at discounted price.

 

[Bengal71]

EU is not really in any position to "punish" BD.

It has enough inflationary pressures and taking a massive garment supplier out of their supplier mix would mean that they would have to pay greater costs for alternative supplier, and there would be delays. You cannot just ramp up production immediately

Like you say if BD hasthe storage capacity then it should go for it. BD can save hundreds of millions of US dollars by buying Russian oil at discounted price.

Whether EU is in a position to punish BD or not is what needs to be probed and determined. I get what you are saying that they might not do it but it should not be assumed, it needs to be determined. Actually there is some evidence that we might be punished, US did a regime change in Pakistan recently because of this reason.

As for the storage capacity, I doubt we have 6 months' worth of storage capacity. Coming to think of it, it might be possible to enter a contract with Russia to buy X amount of barrels (with a consumption forecast for a certain period) and have them supply it over X period of time. It will achieve the same regardless of our storage capacity.

 

[Destranator]

Whether EU is in a position to punish BD or not is what needs to be probed and determined. I get what you are saying that they might not do it but it should not be assumed, it needs to be determined. Actually there is some evidence that we might be punished, US did a regime change in Pakistan recently because of this reason.

As for the storage capacity, I doubt we have 6 months' worth of storage capacity. Coming to think of it, it might be possible to enter a contract with Russia to buy X amount of barrels (with a consumption forecast for a certain period) and have them supply it over X period of time. It will achieve the same regardless of our storage capacity.

Our storage capacity is around a couple of weeks.

 

[Bengal71]

Our storage capacity is around a couple of weeks.

In that case we can try to enter an agreement with Russia to buy 1 year worth of oil at discounted rate and have them supplied every month and pay them on a monthly basis.

 

[UKBengali]

Whether EU is in a position to punish BD or not is what needs to be probed and determined. I get what you are saying that they might not do it but it should not be assumed, it needs to be determined. Actually there is some evidence that we might be punished, US did a regime change in Pakistan recently because of this reason.

As for the storage capacity, I doubt we have 6 months' worth of storage capacity. Coming to think of it, it might be possible to enter a contract with Russia to buy X amount of barrels (with a consumption forecast for a certain period) and have them supply it over X period of time. It will achieve the same regardless of our storage capacity.

Regime Change in BD would be like 10 times harder than in Pakistan.

BD government is strong and key players in society are all pro-Hasina.

 

[Bengal71]

Regime Change in BD would be like 10 times harder than in Pakistan.

BD government is strong and key players in society are all pro-Hasina.

Regime change was easy in PK so they did that. Something else is possible for BD such as reducing our textile exports by one reason or the other. Whatever works. They themselves are importing Russian oil and gas but they are well known hypocrites. So we should not just assume they will ignore. They prey on the weak, they can make our life difficult.

 

[BananaRepublicUK]

Regime Change in BD would be like 10 times harder than in Pakistan.

BD government is strong and key players in society are all pro-Hasina.

Plus the alternatives are too weak and/or prone to religious extremism like India under BJP.

Only the army can overthrow Hasina.

And that cannot happen without full American support because otherwise the EU will cripple the garments trade.

Hasina will, unfortunately, has to allow some freedom in next election.

But that’s a small price to pay.

Hopefully, she will rig it enough to win.

Regime change was easy in PK so they did that. Something else is possible for BD such as reducing our textile exports by one reason or the other. Whatever works. They themselves are importing Russian oil and gas but they are well known hypocrites. So we should not just assume they will ignore. They prey on the weak, they can make our life difficult.

Pakistan is always under full control of the military.

They occasionally have free and fair elections to use the elected leader as a scapegoat.

No elected leader has served a full term in Pakistan.

 

[mb444]

Those are countries with far greater influence and diplomatic power. BD needs to probe first whether we would be able to get away with it just like India, EU or China. If we can then by all means we should do it. But if our exports are affected we should not. Besides I am not sure how much storage capacity we have. If we had say 6 months of storage capacity we could buy and store and save heaps of money. If we don't then it's not going to be very beneficial.

Sure absolutely.... but i am suggesting buying futures... so we pay now or agree price now for an order to be excuted say a year from now. We do not need to worry about storage but we lock in the cheap prices that exists now.

 

[313ghazi]

Seems only Pakistan is left as the regional beggar.

 

[UKBengali]

Plus the alternatives are too weak and/or prone to religious extremism like India under BJP.

Only the army can overthrow Hasina.

And that cannot happen without full American support because otherwise the EU will cripple the garments trade.

Hasina will, unfortunately, has to allow some freedom in next election.

But that’s a small price to pay.

Hopefully, she will rig it enough to win.



Pakistan is always under full control of the military.

They occasionally have free and fair elections to use the elected leader as a scapegoat.

No elected leader has served a full term in Pakistan.

EU will do sweet f*all if BD had a military coup. Few words and that is all now.

EU economy is a total shambles and they cannot add to it by taking the 2nd largest garment exporter out of their mix.

BD probably exports around 25 billion dollars of garments to Western Europe. Good luck replacing that at the same price and without massive delays.