Bloomberg: India purchase cheap Russian oil and re-exports it at market price to Europe and the US
A Bloomberg report stated that India is playing an increasingly important role in the global oil markets after the new sanctions on Russian oil.
According to Bloomberg, India has increased its purchases of cheap Russian oil with the aim of refining it and then exporting it as fuel to Europe and the United States.
India also has decided to use the UAE Dirham currency to purchase the oil from Russia.
The report indicated that India shipped about 89 thousand barrels per day of gasoline and diesel to New York last month, which is the largest in about 4 years.
The Daily flows of low-sulfur diesel to Europe reached 172,000 barrels last January, the largest amount since October 2021.
According to the report, Indian refiners are making big profits by buying low-priced Russian crude and re-exporting it to the West at market prices.
The report also mentioned that experts expect India to expand the export of petroleum products after new sanctions from the European Union that entered into force.
On Saturday, the European Union announced that it would start implementing a ceiling on the price of Russian oil, as of Sunday, February 5th, with the grace period extended to 55 days for the transfer of Russian oil products to which the price limit wasn’t applied by sea.
It’s reported that on December 5, 2022, Western oil sanctions entered into force, as the European Union stopped accepting Russian oil transportation by sea.
The G7 countries, Australia and the European Union imposed a limit on its price during maritime transport at $60 a barrel.
In response, Russia, as of February 1 of this year, banned the supply of oil to foreigners, if the contracts provide, directly or indirectly, for the use of a marginal price-fixing mechanism.
