The discounts are expected to stay around $ 3 per barrel. In July, the EU limited Russian oil prices to $ 47.6 per barrel with an effectiveness of September 3, 15% under $ 60 per barrel from December 2022.
“The discounts are likely to continue in September as soon as it becomes a new price ceiling. After US pressure to interrupt the purchase of Russian oil with discounts, somewhat increased to approximately $ 3 per barrel,” one of the two people said.
The EU statement of July 19, which announces new measures against Russia, said: “The EU limits Russian energy revenues through a number of different measures. The EU reduces the price price of oil from 60 to $ 47.6 per war to compete with the current oil price and introduce one third of oil.”
Inquiries sent by Indian Oil Corp., Bharat Petroleum Corp. LTD, Hindustan Petroleum Corp. LTD and oil producer in the Russian state Rosneft remained unanswered.
India continued to buy Russian oil despite the pressure in the US. Russia appeared as the best raw supplier to India in FY22. Although the import of Russian oil has somewhat decreased in the middle of reduced discounts compared to the maximum of 2022 and geopolitical volatility, Russia remains the best supplier of India.
India imported oil worth $ 16.18 billion from Russia during April-red 26, less than $ 19.46 billion in the same period of the last fiscal data of the Ministry of Commerce. The share of Russian oil according to the value is currently almost 32%, compared to 38% of the Indian total import basket a year ago.
The parties also expect that the volume of Russian supplies will remain disturbed by the new price limit and sanctions by more “shadow fleets” of the EU. On condition of anonymity, the trader stated that with the coming price ceilings, informal trading also gains strength and volumes are not affected.
“When the price limit of $ 60 was set, shadow fleets have increased dramatically. The net has grown since then. As soon as the cargo changes its hands into formal traders, it will enter formal business. We can see the increase in these fleets,” the trader said.
The shadow fleet is a secret network of ships, often old and poorly maintained, used to transport oil secretly, avoiding international sanctions, price ceilings and supervision.
Although the price is limited, Russian oil was not sanctioned, as in the case of Venezuela and Iran.
“When a price limit of $ 60 was offered in 2022, Russian suppliers offered discounts; so now a similar trend can be expected.
In December 2022, Brent oil prices were approximately $ 78-80 per barrel. Based on landing, discounts were $ 8-9 at that time for a barrel for India. Brent currently trades around $ 67 per barrel.
The clerk said, “It is worth considering why the West decided not to meet Russian oil into sanctions. India refrained the purchase of LNG and LPG from one of the sanctioned projects from Russia.” The official also stated that no oil purchased from Russia, India, was balanced at higher prices, as US officials claimed.
Another official with the state -run dog noted that India uses clean fleets to import Russian oil and EU sanctions on some fleets would also not have an impact on stocks.
The US tried to push India to stop Russian oil purchases. It ordered 25% additional tariff above and above the previously announced 25% compared to India, which imported cheap Russian oil and “profit” from discounted prices.
India claimed that her energy supply decision would depend on demand and energy security requirements.
On August 20, Russian representative of a sales representative in India, Evgeniy Griva told reporters that Russia offers India about 5%.
“There is a mechanism to supply oil (to India). Now we can’t discuss it … There is a very special mechanism,” Griva said, adding that Russia usually offers Indian buyers about 5% discount, “Griva said.
(Tagstotranslate) oil
