Russian oil trades at zero discount or even at a premium - Novak

© Правительство РФ

Due to increased demand for oil products amid the Middle East crisis, Russia has started selling its oil either at zero discount or even with a premium, Deputy Prime Minister Alexander Novak said.

"Today, with a market deficit, our oil and oil products are in high demand, and as we can see, discounts have decreased, and in some cases, sales are now even going with a premium," Novak was quoted as saying by TASS.

He also noted increased freight costs, as many tankers transporting oil products are "stuck" in the Strait of Hormuz (a narrow waterway in the Persian Gulf through which a significant portion of global oil shipments pass).