Crazy Discounts on Russian Oil: Is India Dare to Take the Risk?
The price of Russian Urals oil has plummeted to its lowest level in at least two years. After US sanctions targeted energy giants Rosneft and Lukoil, the flow of cheap oil India had been enjoying suddenly stopped. But now, Russia is offering Urals to India at discounts of up to $7 per barrel compared to Brent, significantly deeper than the previous discount of around $3.
Previously, many Indian refiners refused to buy Russian oil for delivery after the sanctions took effect last week. They feared that supply from blacklisted companies would pose legal risks and disrupt shipments. As a result, India increased oil purchases from other regions such as the Middle East.
However, in recent days, the attitude of Indian refiners has begun to change. The lower prices have prompted some companies to return to Russian oil, provided it is sold by suppliers not on the US sanctions list. However, sources say only about 20% of the total cargoes offered are truly "clean," meaning they come from entities not subject to sanctions.
This aggressive price drop demonstrates how US sanctions are disrupting the Russian oil trade and also opens up new opportunities for India to capitalize on the steep discounts. If more Indian refineries resume purchasing Urals, previously stalled trade flows could resume, albeit on a more limited scale. (asd)
Source: Newsmaker.id
