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India's oil supply.

 


According to independent research firms, Russia has surpassed Iraq and Saudi Arabia as India's largest suppliers of oil. Asia's third-largest economy enjoys steep price discounts caused by sanctions on Moscow. India has historically bought most of its oil from Iraq and Saudi Arabia, but Russian imports have surged since Vladimir Putin invaded Ukraine. Western energy sanctions have pushed Russia to cut prices for those buyers still willing to purchase its crude oil trade data show. US Treasury secretary Janet Yellen has signalled the US is glad to see this continue, telling Indian media this week that Washington wanted India to benefit from a western price cap on Russian oil that would give it a bargaining chip to negotiate deeper discounts.

G7 countries agreed in September to implement the price cap, which the US government hopes will be in place by December 5 when an EU embargo on the shipment of Russian crude comes into force. «Our objective is to hold down the price that Russia receives for its oil and keep that oil trading,» Yellen told the Press Trust of India ahead of a visit to New Delhi this week. «We hope India would take advantage of this price cap». India's foreign minister S Jaishankar was in Russia yesterday.

Russia's flagship Urals crude was trading at $80 a barrel yesterday, compared with $97 a barrel for global benchmark Brent. Urals crude has traded at a discount of about $30 for much of the year. While estimates of India imports vary, analysts at three independent trackers said Russian crude had squeezed out more expensive Iraqi and Saudi Arabian oil over the past three months. Russian crude arrivals to India, the world's fastest-growing major economy, averaged 970,000 barrels per day in October, according to research firm Kpler, from 942,000 BPD in September.

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  1. Max9 November 2022 at 13:23

    India could and should take advantage of this situation. Their economy can grow even more because of this price cap. And since they are probably the biggest buyer for Russia's oil, they must ask for a price discount. They are in a strong position now and should profit from it.

    ReplyDelete
  2. Arthur Graham10 November 2022 at 12:38

    I guess it's a "well done, EU!" then isn't it? If they did this on purpose to help India while weakening Russia, that was a smart move. Let's see what happens after December 5. Should be interesting.

    ReplyDelete

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