India Cuts Purchase Of Russian Oil: India’s oil refining companies, which were buying crude oil from Russia cheaply for the past several months, this month after a huge increase in transport charges, crude oil from Russia. Have made up your mind not to buy. Indian refining companies will now buy crude oil from Africa and Arab countries.
Buying oil from Russia is expensive!
India’s oil companies will have to pay 5 to 7 dollars more per barrel if Russia’s ESPO Crude Oil is imported. Whereas oil of the same grade is available cheaply in the United Arab Emirates (UAE). Instead of Russia’s ESPO crude oil, Indian oil companies are buying from countries in West Africa. Not only this, the price gap between Brent Crude Oil and Dubai Benchmark has also come down.
India is buying less oil from Russia
In the month of June, India had bought a record quantity of crude oil from Russia, since then there has been a continuous decline in purchases. 2 million tonnes of crude oil has been loaded from Russia to India, which was 3.55 million tonnes in August, of which 585,090 was ESPO crude. India has bought 2.35 million tonnes of oil from Africa this month, compared to only 1.16 million tonnes in August. Anyway, due to the shutdown for maintenance in the refinery in September, companies are going to buy less crude oil.
Gulf countries reduced prices!
Crude oil producing Middle East countries have also cut prices, which has affected crude oil coming from Russia. While it takes a month for crude oil to come from Russia to India, it takes only a week to come from the Gulf countries.
Benefit of cheap oil after war!
After Russia’s attack on Ukraine in February 2022, the US, European countries, stopped buying crude oil, imposing sanctions on Russia. After which Russia offered to sell oil cheaply to India and India’s government and private refining companies took advantage of the opportunity and imported crude oil cheaply and refined it and exported the final products. These companies benefited tremendously from this. Before the war, India rarely bought crude oil from Russia. But Russia sold crude oil to India and China cheaper than international prices.