Price Cap on Russian Oil: On December 5, 2022, Western countries had announced to impose a price cap of $ 60 per barrel on Russian oil. America and its allies have taken this step to put pressure on Moscow regarding Ukraine (Russia-Ukraine War). Many countries including America, European Union, Britain, Canada, Japan are supporting this price cap. After this decision of western countries, concern was being expressed about whether this price cap will affect India now.
According to the report published in Economic Times, India will continue to get the benefit of cheap oil even after the implementation of this price cap. India can buy Crude Oil Price at a much lower price than the price cap of $60. Let us tell you that India has not given its support to the price cap imposed by the western countries. In such a situation, the possibility of this cap affecting India is less.
India will not have any problem in buying crude oil from Russia
India had imported more than 80 percent of crude oil from Russia, Urals Crude, ESPO Blend and Sokol Blend. Talking about the current prices of all these, it is trending around $ 49 per barrel, $ 62 per barrel and $ 69 per barrel. In such a situation, the Indian refinery may not face any problem in buying these oils at a discount price. According to experts, India can buy crude oil from Russia even further within the cap of $60 as the price of crude oil is continuously falling in the international market.
Russia will not give oil to countries that impose price cap
Talking to Economic Times, Ratnagiri Refinery and Petrochemical CEO MK Suvarna said that if the price of Russian oil continues to fall, then instead of selling its oil at low prices, Russia can consider the option of reducing its supply. This will increase the demand for oil in the market and due to this the price of Russian crude oil will also increase. Along with this, Russia can stop the supply of oil to those countries which have given their support to this price cap.
Along with this, MK Suvarna also said that India will keep its benefits paramount while buying oil from Russia. If he will not benefit while buying oil from Russia, then he can also stop buying oil from Russia. In such a situation, the effect of the price cap imposed on Russia in the current situation is likely to be very less on India. India can continue to buy crude oil from Russia at a much lower price of $60 per barrel.