India's reliance on cheap Russian crude oil is being propped up by Moscow's efforts to circumvent US sanctions, according to industry experts. The US has been trying to coerce India into halting its imports of Russian oil, but so far, New Delhi has refused to back down. Instead, Russia is reorganizing its supply chain to allow countries like India to continue buying discounted crude.
The US has brought in sanctions targeting companies that purchase oil from Rosneft and Lukoil, Russia's two largest oil exporters and the biggest sellers of oil to India. While these sanctions have had an initial impact, with imports of Russian oil dropping by around a third, experts say they may not be effective in the long term.
New players have emerged as shadow middlemen between Russian oil giants and refineries in countries like India. These companies are already dominating exports and it's likely that most barrels will soon be supplied by them. Russia is also using these new suppliers to bypass sanctions and continue supplying oil to countries like India.
The low price of Russian oil has made it hard for countries like India, which imports 90% of its oil, to turn away from it. The discounts on Russian crude have dropped even further, making it $9 or $10 per barrel cheaper than oil from countries like Saudi Arabia or Iraq. This presents a significant bargain for India's refineries.
Analysts say that most Indian refiners will soon return to buying Russian oil, and Reliance, the country's largest private oil company, is already exploring alternative suppliers. The US has been trying to deter Reliance from buying Venezuelan oil, but this could present an opportunity for the conglomerate if it can get authorization to do so.
For the companies that are still willing to buy Russian oil, it's a risk worth taking because it would represent savings of almost $4 billion over a year. The discount is just too attractive for Indian refiners not to take advantage of it.
The US has brought in sanctions targeting companies that purchase oil from Rosneft and Lukoil, Russia's two largest oil exporters and the biggest sellers of oil to India. While these sanctions have had an initial impact, with imports of Russian oil dropping by around a third, experts say they may not be effective in the long term.
New players have emerged as shadow middlemen between Russian oil giants and refineries in countries like India. These companies are already dominating exports and it's likely that most barrels will soon be supplied by them. Russia is also using these new suppliers to bypass sanctions and continue supplying oil to countries like India.
The low price of Russian oil has made it hard for countries like India, which imports 90% of its oil, to turn away from it. The discounts on Russian crude have dropped even further, making it $9 or $10 per barrel cheaper than oil from countries like Saudi Arabia or Iraq. This presents a significant bargain for India's refineries.
Analysts say that most Indian refiners will soon return to buying Russian oil, and Reliance, the country's largest private oil company, is already exploring alternative suppliers. The US has been trying to deter Reliance from buying Venezuelan oil, but this could present an opportunity for the conglomerate if it can get authorization to do so.
For the companies that are still willing to buy Russian oil, it's a risk worth taking because it would represent savings of almost $4 billion over a year. The discount is just too attractive for Indian refiners not to take advantage of it.
Moscow is basically blackmailing the US into leaving them alone and it's not fair to India 
They need that cheap oil to survive but at what cost? The US sanctions are just a drop in the ocean compared to the billions of dollars they're saving by importing Russian oil 
I mean come on, $4 billion is a huge sum of money and Reliance is basically throwing it away if they don't take advantage of this deal 
And what's with the US trying to deter them from buying Venezuelan oil? Are they just gonna sit back and watch India do whatever Russia wants? 
It's like the world is one big chess game and we're all just pawns being moved around by these powerful players 
. I mean, we all know the US sanctions are in place to limit Russia's influence, but it seems like Moscow is finding ways to work around them pretty easily 
. The fact that new middlemen are popping up and dominating exports is a major red flag for me 
.
. Reliance's decision to explore alternative suppliers is a good move, though - they need to think about their own bottom line 
.
. They can't just sit back and let Russia dictate the terms of trade 
. It's time for New Delhi to negotiate a better deal, not play Russian roulette 
.
. and now we got these shadow middlemen companies just swooping in to take care of the oil trade for them 
. almost $4 billion in savings is pretty enticing, you know? 
.
. and honestly, i don't blame them 
these new middlemen r doin the trick & russians r makin bank 
