May 22, 2024

Russian November oil value for India hit 12-month excessive

India paid a mean of $85.42 per barrel for Russian oil in November, the best because the Group of Seven (G7) superior economies imposed a value cap of $60 per barrel to chop Moscow’s income, preliminary authorities knowledge exhibits.

India paid 1.4% extra for Russian oil in November in comparison with $84.20 per barrel in October, Reuters calculations based mostly on authorities knowledge present.

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The info additionally confirmed declining reductions for Russian oil narrowed the value hole with India’s second largest oil provider Iraq in November.

India paid a mean $85.73 per barrel for provides from Iraq and $93.32/barrel for Saudi oil, the info confirmed.

Because the imposition of the value cap in December 2022, India has largely paid above the $60 ceiling for Russian oil that had nonetheless proved cheaper than the same grades from elsewhere. June was an exception when costs have been decrease.

Indian refiners purchase Russian oil on delivered foundation from from ports in Greece, South Korea and Spain, in addition to immediately from Russia.

Gross sales from Russian ports at greater than $60/barrel led to the U.S. putting sanctions on some ships and vessel operators.

Washington additionally tightened guidelines together with toughened scrutiny by banks and repair suppliers to make sure that cargoes don’t breach the $60 per barrel value cap.

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Subsequently, some ships carrying Russian oil for India have been diverted in November and December, denting India’s consumption of Russian oil in December.

Sources had stated ships with Russian oil have been diverted resulting from fee issues.

Nonetheless, India’s oil minister Hardeep Singh Puri on Wednesday stated that the decline in India’s import of Russian oil was due to unattractive costs and never due to fee points.