BANGKOK, April 21. /TASS/. Asian nations face acute demand for Russian oil due to the unstable situation in the Strait of Hormuz, Jaziri Alkaf, the former Senator of the Parliament of Malaysia, told TASS.

"The Philippines, Vietnam, Indonesia, and Malaysia are all actively negotiating with Russia to secure crude supplies following Middle East disruptions. Russian oil serves as a vital buffer, particularly through the ESPO pipeline route which bypasses the volatile Strait of Hormuz," the expert said.

"Pricing has undergone a dramatic reversal. Russian Urals crude, historically discounted, now commands premium pricing—rising 67% to $94.5/barrel. ESPO Blend flipped from a $7-10/barrel discount to a $2-5/barrel premium against Brent, reflecting acute market tightness and desperate Asian demand," he noted.

Malaysia is consuming about 700,000 barrels per day but domestic production stands at about 350,000 barrels per day only, Alkaf said. "This structural deficit means the nation must import half its oil needs, making it highly vulnerable to supply shocks and price volatility. Strategic Petroleum Reserves are insufficient for prolonged disruptions," he stressed.

"Approximately 38% of Malaysia's crude imports transit the Strait of Hormuz, exposing the country to shipping delays, surging freight rates, and increased insurance premiums," the expert continued. "Crude oil prices have risen nearly 40%," he added.