While the Indonesian government is under pressure over rising energy costs, the country is reportedly considering joining its Asian peers in buying Russian oil.
What happened: Indonesian President Joko Widodo said the nation must examine “all options” if it wants to join countries like India and China in buying Russian oil, the reported financial times.
“We always monitor everyone options. If there is the country [and] they make a better price, of course,” Widodo told the Financial Times in an interview. “There is an obligation for [the] Government to find different sources to meet the energy needs of their population. We want to find a solution.”
Why it matters: Indonesia hasn’t imported significant quantities of oil from Russia in years, but Widodo’s government is under pressure to control rising costs after it was forced to hike some fuel prices by as much as 30% this month, the report said.
Russia has offered Indonesia to sell oil at a price 30% below the international market price, the report said, citing the country’s tourism minister.
Consequences: If Indonesia attempts to buy Russian oil above the price cap set by the G7 countries, the nation will face potential US sanctions when the G20 summit takes place in Bali in November, the report said. Russian President Wladimir Putin and the President of Ukraine Volodymyr Zelenskyy were invited to the meeting by Widodo, the report said.
price action: West Texas Intermediate futures fell 0.22% to trade at $87.591/barrel. That United States Brent Oil Fund BNO closed 1.68% higher during the vanguard Energy Index Fund ETF VDE Traded 1.73% higher.
