India has increased imports of Russian oil by 50 times
India's import of Russian crude oil has increased 50 times since April and, to date, represents one-tenth of the oil imported from the subcontinent, the Economic Times reported today, citing a senior government official.
About 40% of total Russian oil imports go to private refineries, the report said.
Earlier this month, data showed that Indian imports of Russian crude in the first quarter of this year alone were five times higher than all Russian crude imported from India in 2021.
Also this month,Bloomberg reported that some of India's largest refiners were looking to negotiate half-yearly supply deals with Russian oil giant Rosneft, thereby making oil supplies currently still spot stable. In this way, the Russian company comes to permanently replace the lost sales in the West.
In reality, however, at the present time, it seems that the reduction in sales to Europe is more perceived than real, at least as far as refined products are concerned. Energy Intelligence reported this week that European buyers are importing even more Russian oil products than last year.
Indeed, crude oil flows from Russia to Europe are lower than last year.
India and China, meanwhile, have emerged as the major alternative routes for Russian crude. In May, Russia became India's second largest oil supplier, surpassing Saudi Arabia. It also overtook the Saudis last month to become China's largest oil supplier.
Currently, about 50% of Russia's crude exports are moving east. Compared to about 75 percent heading west to Europe earlier this year, according to Gazprom Neft CEO Alexander Dyukov.
For India and China, Russian oil is a bargain, as it is being sold at a steep discount compared to the international benchmark, at a time when the price of oil is becoming a serious problem, even for developed countries' budgets. Having already a strong discount, it seems useless to talk about the “price ceiling”. The price cap is already being applied by India and China.
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The article India has increased the import of Russian oil by 50 times comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lindia-ha-incrementato-limportazione-di-petrolio-russo-di-50-volte/ on Mon, 27 Jun 2022 08:00:21 +0000.