Translated material
The price of Russian oil for India has fallen to its lowest level since the start of the war
The average cost of Russian oil purchased by India was $70.18 per barrel in March, according to data from the Indian Ministry of Trade and Industry. This is the lowest price of fuel imports from Russia to India since the beginning of the war, writes Bloomberg.
Details . In February, Indian buyers paid an average of $72.14 per barrel of Russian oil, and $118 in 2022.
- The fall in prices is due to the pressure exerted on the market by the “ceiling” of oil prices from Russia introduced by Western countries, the agency notes. Now it is $60 excluding shipping costs. The cost of oil for Indian buyers includes the cost of delivery.
- In March, India bought oil from Iraq for an average of $77.57 per barrel, and from Saudi Arabia for $87.01 per barrel.
- The fall in the price of Russian oil is accompanied by an increase in its share in the Indian market. According to the analytical company Vortexa, in April, Russian oil supplies to India for the first time exceeded the combined supplies from Iraq and Saudi Arabia.
Context. Almost immediately after the start of the war, Western companies began to refuse to buy Russian oil. Last spring, the United States and Great Britain imposed an embargo on Russian oil. In December, the European Union introduced a partial embargo and a price ceiling. In February, the EU introduced similar restrictions on petroleum products. The ceiling for crude oil is $60 per barrel, for petroleum products like diesel and gasoline $100, and for cheaper products like fuel oil $45.
- However, Europe has not yet been able to completely get rid of Russian oil. At the end of April, Bloomberg wrote that it continues to reach Europe, but through India, which buys cheap Russian fuel, refines it, and then supplies gasoline to European countries. India is ramping up exports of refined oil to Western countries while buying a record amount of Russian fuel, according to analyst firm Kpler.
- In the first quarter of 2023, Russia's oil revenues fell 1.5 times compared to the last quarter of 2022. The main reason was the export restrictions imposed by Western countries.