India is trying to bargain for a higher discount on Russian crude to compensate for the risk of working with the OPEC+ producer as other buyers turn away, sources reported.
The South Asian country is seeking Russian crude oil at less than $70 a barrel on a delivered basis to make up for additional obstacles, like securing financing for purchases, in high-level talks between the two nations. Global benchmark Brent crude oil is trading close to $108 a barrel.
Private refiners and state-owned in the world’s third-largest oil importer have purchased over 40 million barrels of Russian crude oil since Russia invaded Ukraine in late February, which is 20% more than India’s purchase of Russian oil for the whole of 2021.
India, which imports over 85% of its crude oil, is among the few remaining buyers of Russian crude oil—a critical source of revenue for Vladimir Putin’s regime.
Decreasing European demand is putting severe pressure on Russia’s oil industry, with the Kremlin forecasting output could drop by almost 17% in one year alone.
The sources reported that India’s state refineries could take about 15 million barrels a month, which is nearly 10% of overall imports if Russia agrees to the discount demands and delivers the oil to the nation.
Tencent plans to divest its $24B stake in Meituan
OLA electric to launch a new EV in India on August 15
India rejects privacy bill that scared big tech firms, works on new law
Hyundai plans to electrify its high-performance N brand
Iran cuts cost of its oil to compete with Russia in China
© 2022 CIO Bulletin. All rights reserved.