Cheap Russian Oil Registers Indian Purchasers
Russia is discounting oil to India as trade tensions intensify. Data intelligence firm KPLER Limited says that the Urals grade crude oil is currently five dollars lower than Brent crude. The two were equal in price just two weeks ago.
Oil Prices Sway with Uncertainty About U.S. Behavior
As a result of capricious policies by the United States, prices of Urals oil can decline even more. Indian state-owned firms are hesitant to purchase Russian oil owing to possible U.S. secondary sanctions.
Russia's Maintenance Work Boosts Exports
Russia is performing maintenance on its refineries from August through mid-October. As a result of this, Russian oil exports have grown in the past several weeks. This supply boost is keeping prices low, Humayun Falakshahi of KPLER opined.
Russian Oil Dominates Indian Market Share
Russian oil currently commands a 37 percent market share of oil in India. If India attempts to reduce this supply abruptly, it will be costly. KPLER has cautioned that immediate cessation of imports would be costly.
Shift in Indian Oil Purchase Patterns
A few Indian oil firms are considering stopping Russian purchases. Private firms are still making purchases, though. India's oil import from the United States has also been at 225,000 barrels daily since May. This is double the amount compared to the beginning of the year.
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