Moscow had to sell large volumes of “black gold” to Delhi at deep discounts, after the introduction of the oil embargo.
Russia was forced to sell oil to India at a greater discount than before. This was reported by Reuters news agency on Wednesday, December 14.
After the entry into force of the European oil embargo on December 5, Russia is faced with the need to find new markets for the sale of large volumes of oil. Specifically, one million barrels per day.
Exporters from the Russian Federation are forced to compete with each other and with suppliers from the Middle East. The only way to maintain market share is to increase discounts. As a result, India is its biggest beneficiary – it is the main buyer of Russian oil after February 24th.
The Russian oil standard in December began to be sold at a discount of $ 12-15 compared to the Dated Brent benchmark, which takes into account insurance and ship delivery, media reports. In November, the discount was $10-11, in October – $5-8.
Discounts on Urals, excluding freight, at ports on Russia’s west coast in some deals for sale to India rose to $32-35 per barrel. At the same time, Dated Brent was priced below $80 per barrel in early December.
Some oil suppliers from Russia are trying to independently deliver “black gold” to India to reduce transportation costs. However, many companies still rely on trading firms and are forced to share profits with them.
The price ceiling for Russian oil is set at $60 per barrel. Its basic cost is around $15-45 depending on the deposit.
As previously reported, Russia has become the largest fertilizer supplier to India for the first time in the first half of the 2022/23 financial year. It took a fifth of the Indian market share.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.