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Bharat once again showed the world how special and deep his friendship with Russia is compared to other countries. India has made it clear that even though the discount from Russian oil in the global market has reduced, it will not stop taking crude oil from there.
Russian oil buyers prefer Russian oil over Gulf countries
- Russian oil buyers of India have made it clear that even today Russian oil is one of the cheapest options for India.
- Gulf countries were expecting India to buy oil from them, but this decision comes as a big blow to their expectations.
- Consumption of Russian crude oil in India has increased since last year, with Saudi Arabia becoming the top supplier, surpassing Iraq.
- The rising inflation in the country was a key factor in this decision to control prices.
Russian crude oil cheaper than Gulf oil
- Executives at major Indian refineries state that the quality of Russian oil and Gulf oil is almost the same.
- Despite the slight price increase, Russian oil is still much cheaper than oil from the Middle East.
- This means that India is still buying more Russian oil than estimated.
No problem in refining Russian crude oil
- There has been a perception that India has too little capacity to refine Russian crude, but this is not true.
- Indian refiners can continue with their Russian oil imports as long as the discount is higher than the import cost.
- In June, the average cost of landing Russian crude on Indian shores, including freight, was $68.17 a barrel, the lowest since Moscow’s invasion of Ukraine.
Crude oil at 9-month high
- Crude oil production has been banned by Saudi Arabia and Russia, leading to an increase in global crude oil prices.
- Official data shows that the average cost of landing Russian crude on Indian shores was lower compared to Saudi Arabia.
- Crude oil prices have reached a 9-month high, but solid returns from refining fuel are offsetting the increase in costs.
The amount of Russian crude oil imports has decreased in recent months, but it is expected to increase again from October.
News Summary:
👉India will continue to import crude oil from Russia despite a reduction in discounts.
👉Russian oil is still one of the cheapest options for India, causing a blow to Gulf countries expecting India to buy from them.
👉Consumption of Russian crude oil in India has increased, with Saudi Arabia becoming the top supplier.
👉Indian refiners have no problem refining Russian crude oil and will continue imports as long as the discount is higher than the import cost.
👉Crude oil prices have reached a 9-month high due to production bans by Saudi Arabia and Russia.
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