Russia offers India a $35/bbl discount on oil

Russia offers India a $35/bbl discount on oil

Russia offers India a $35/bbl discount on oil Russia is giving India steep discounts on the direct sale of oil because other countries are less interested in buying Russian oil after the invasion of Ukraine, people who know the situation say.


Zelenskiy wants Australia to send Tanks to battle Russia

The sanctions-hit nation is offering its flagship Urals grade to India at discounts of up to $35 a barrel compared to prices before the war in an effort to entice India to increase its oil shipments, according to people who asked not to be identified because the discussions were private and confidential. Headline Price increases of around $10 per barrel of Brent oil have occurred since then, signifying an even greater drop in value from current levels.

Russia offers India a $35/bbl discount on oil



Russia wants India to take 15 million barrels of oil contracted for this year simply to get the ball rolling, according to the sources, who added that the discussions are taking place at the highest levels of government.

Asia’s second-largest oil importer is one of a small number of countries that have increased their reliance on Russian crude, despite international pressure and sanctions. Following the invasion of Ukraine, Russian barrels have been moving in greater numbers to Asia, as purchasers in Europe and the United States have shied away from the supply. The two largest buyers have been India and China.


They also noted that Russia has made rupee-ruble payments available through the Russian messaging system SPFS, which they believe will make trading more attractive for Indian traders. It is unlikely that a final decision would be reached until Russian Foreign Minister Sergei Lavrov comes in India on Thursday for a two-day visit, according to sources familiar with the situation.

The direct purchase is believed to involve Russia’s Rosneft PJSC and India’s largest processor Indian Oil Corp., both of which have an optional term contract for close to 15 million barrels of oil per year that is rarely used. Although it is unclear what the high end of the buying range would be, India is believed to have a limited demand for the grades that are being made available.

It is written into the contract that Indian Oil will only purchase when it is economically feasible, according to the sources, who also stated that a discount granted by Russia may make the oil transaction possible even at a higher freight rate.

Representatives for Indian Oil did not immediately respond to calls requesting comment, and the Indian Oil Ministry declined to provide any additional information.


Fully Funded Canada Scholarships -Government of Canada

The two parties are looking into the possibility of routing the oil through Russia’s Vladivostok Port, which is located in the country’s far east, in order to circumvent shipping obstacles from the Baltic Sea, which is located in the country’s west. According to the experts, oil supplies might arrive at India’s east coast refineries in less than 20 days from there.

India is also attempting to increase its exports of medicines, engineering goods, and chemicals to Russia in order to close the trade gap produced by the country’s oil and military acquisitions.

Since the beginning of the war, Urals crude has been selling at a discount. In a pricing window organized by S&P Global Platts last week, Litasco, the trading arm of Russia’s Lukoil PJSC, offered a cargo of Urals at a discount of $31.35 to the Dated Brent benchmark, representing a savings of $31.35 per ton. There were no bids, and the price was a greater discount than a record-low offer made by Glencore Plc a little more than a week earlier. China purchases a different grade of oil from Russia than the United States.


Bell Oil & Gas- BDE Line Pipes And OCTG

India has taken a more tolerant position toward Russia’s activities, whereas the United States and its allies have attempted to isolate and punish Moscow for its invasion of its neighbor. Even in the face of international criticism, India has refused to condemn Moscow’s strike in the strongest possible terms.

Leave a Reply

Your email address will not be published.