The United Arab Emirates agreed to supply Indonesia with up to 30 million barrels of oil, as Jakarta looks for fuel from alternative sources. In the US, three tankers carrying Russian diesel are due to arrive next week under a licence meant to ease fuel prices.
The United Arab Emirates agreed to supply Indonesia with up to 30 million barrels of oil, according to Djoko Siswanto, head of Indonesia's upstream oil and gas regulator SKK Migas. He made the announcement on Tuesday.
Indonesia seeks fuel from alternative sources
The commitment followed a meeting between Indonesian officials and UAE Ambassador Abdulla Salem Al Dhaheri in Jakarta, Djoko said at an energy event. Indonesia can draw from the supply at any time, he said in a text message, but he gave no details on the delivery timeline. The UAE embassy in Jakarta did not respond to requests for comment.
The deal came a day after Indonesia's Energy Minister Bahlil Lahadalia said he had received instructions to secure fuel supplies from alternative sources. The directive came as disruptions in the Middle East continue.
Washington turns to Russian diesel
Three tankers carrying Russian diesel, around 140,000 tonnes combined, are scheduled to arrive at American ports next week, according to the Financial Times. They are the first shipments licensed under President Donald Trump's recent deal with Vladimir Putin to exempt Russian diesel from sanctions.
The FT reports that diesel at the pump averages $6.34 a gallon in the US, up from $3.66 a year ago. However, the plan has drawn pushback: a group of lawmakers warned in a letter to US bank, port and fuel distributor chief executives that importing Russian diesel may bring legal action and congressional investigations.
Two of the three vessels are under sanctions, which the FT says raises legal risks for firms handling the cargoes. Analysts also say Moscow could struggle to deliver the volumes mentioned in the agreement, particularly if Ukraine steps up attacks on refineries.
Sources: Investing.com, FT
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