The decision by a number of OPEC+ countries to reduce daily oil production has resulted in higher currency prices for this type of fuel. This trend could negatively impact Russia’s oil exports to India, as New Delhi will not purchase raw materials from Russia at high prices. informs Bloomberg agency, citing the source.
On December 5, 2022, the ceiling price mechanism for Russian oil, established by the G7 countries, the European Union (EU) and Australia, came into effect. On its own terms, the upper limit on which you can buy raw materials from the Russian Federation was 60 dollars per barrel. Some Indian lenders, including the state-owned Bank of Baroda, have informed local refineries that they will not pay for oil purchased above the limit.
“The desire of OPEC and its allies to raise oil prices is causing Russian raw material prices to rise, which in turn raises fears from Indian banks that supply may exceed the $60-per-barrel limit. State Bank of India and Bank of Baroda informed refineries that they will not pay for oil purchased above the limit.
Currently, the banks of the South Asian country closely monitor the prices at the ports of loading raw materials from Russia. However, after these checks, the final cost, which includes the importers’ delivery and logistics costs, is included in the note.
April 12 Bloomberg cites its own calculations reportedThe volume of oil exported by Russia through ports decreased to 2.9 million barrels per day (b/c). For the week of April 1-7, offshore oil shipments fell 1.24 million barrels per day, the strongest drop in volumes since mid-December 2022.