India, the main buyer of Russian Ural oil, has come to terms with rising fuel prices, as this brand of raw materials still remains one of the most affordable on the world market. In this respect writer Bloomberg cites data from Argus analysts.
Previously, the discount on the Dubai variant Dubai Crude for the Urals was $ 20 per barrel, now it is around $ 8. As of August 10, the price of Russian raw materials supplied to the west coast of India, including transport costs for delivery, approached $ 83 per barrel. A month ago, a barrel of Ural was sold to India for $ 70. Despite the rising cost of Russian fuel, four refineries in India continued to buy the oil. Factories announced their decision, with fuel from the Russian Federation being more affordable than Middle Eastern varieties. Samiran Chakraborty, chief economist of Citigroup India, said that India will continue to buy raw materials from Russia, until the discounts outweigh the increasing logistics costs.
“India’s consumption of Russian oil has increased sharply since last year. The Russian Federation has become the country’s leading raw material supplier, taking Saudi Arabia and Iraq from the top ranks. This was largely due to prices and Prime Minister Narendra Modi’s efforts to reduce inflation in energy prices.
Russia it happened According to a report by the Organization of Petroleum Exporting Countries (OPEC), it is the largest supplier of oil to China and India in June 2023. Russia, which provided 45% of total imports in June, is considered to be the leader in oil supply in India for a year. India’s total oil import volume in June was 4.7 million barrels per day, down slightly by 3% compared to May. Mint reported that Russia is also the largest oil exporter to India in the 2022-2023 fiscal year.
Former Russian exporters faced It faces a serious problem in trade with India.