Russia struggling to sell oil as Buyers flee the Stigma

Russia is struggling to sell oil as buyers escape the stigma, logistical challenges, and fears of further sanctions associated with dealing with Moscow after the invasion of Ukraine.

According to analyst and head of Rystad Energy, Jarand Rystad, Russia will most likely lose around 1 million barrels per day even without direct sanctions to its energy industry. This can take place despite the scarcity of global supplies sending prices soaring.

OPEC and other major oil exporters, including Russia have refused to increase production beyond previously-agreed levels when they met on Wednesday, showing hopes of easing supply pressures.

New energy infrastructure could be hampered, such as Rosneft's flagship Vostok Oil project in Siberia. Oil trading giant of Switzerland, Trafigura is also reviewing options over its Vostok minority stake. European buyers are also turning to oil from the crude-rich Middle East with Russia being sidelined. 

However, the two least capable countries, the United Arab Emirates and OPEC kingpin Saudi Arabia are reluctant to increase production. One of the uncertainties in Iran, which is undergoing final negotiations with the world's major powers to lift its own sanctions related to its nuclear program.

Tehran has agreed to step up exports if a deal is reached, but how quickly the oil sales could impact the market is yet to be seen.