India: we will continue to buy Russian oil even after the sanctions
India said it will continue to buy Russian crude after the embargo and price caps come into effect on Dec. 5.
India has always declared its intention to continue buying any type of crude oil that is more convenient from a financial point of view for the country, which is heavily dependent on imports. The Indian Oil Ministry official, quoted by Attaqa, said the sanctions imposed on Russian oil – particularly on Western shipping and insurance services – would not apply to India, as the country intends to use non-Western services to transport the Russian crude by sea to India.
With Poland finally on board, the EU has agreed to limit the price of Russian crude to $60 a barrel, higher than the levels at which Russia's Urals are currently trading with some eastern countries. Russia has promised to stop shipments to all countries applying the price cap. But the price cap only applies to countries hoping to use Western ships and Western insurers, which means it won't apply to India.
The G7's $60-a-barrel price cap and EU embargo on Russian crude will take effect on Monday, December 5. An embargo on petroleum products will follow in February.
Analysts' forecasts on how the crude oil price cap and embargo will affect oil markets are mixed. India and perhaps China will continue to buy Russian crude without the help of Western services, mitigating the effect of the sanctions. But insiders have also noted that there are a limited number of non-Western vessels and insurers capable of bringing Russian oil to markets.
Last week, both China and India bought crude oil from Russia at a huge $33.28 discount to Brent, meaning they are already buying well below the price cap.
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The article India: We will continue to buy Russian oil even after the sanctions comes from Scenari Economics .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lindia-continueremo-a-comprare-il-petrolio-russo-anche-dopo-le-sanzioni/ on Sat, 03 Dec 2022 08:00:19 +0000.