Putin Gives Deep Discount On Russian Oil To Friend India
Crude sold to India even “Below” the price cap in buyers market
Bonanza for India amid Putin warnings against price cap to west
Russian oil has been sold to India below price cap in buyers market .
Deeper discounts were given to New Delhi this month on Russia flagship urals crude oil according news agency reuters report citing traders .
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Russia Gives Deep Oil Discounts To India
For some deals this month, the price for urals in India ports, including insurance and delivery by ship , has fallen to around minus $12-15 per barrel versus a monthly average of dated brent down from a discount of $5-8 per barrel in October and $10-11 in November. The discounts mean oil is in some cases being sold at below overall production cost including local levies .
Russian oil suppliers are trying to handle urals oil transport to India themselves using their own vessels and shipping partners which can reduce transport costs. ( Traders and Industry Experts To Reuters)
The decision comes as Putin has made it clear to the west that Moscow won’t sell Russian oil to any country which imposes a $ 60 price cap . Russia has also said it will not abide by the cap even if it has to cut production .
On December 5 G7 nations and EU implemented a $60 price cap on Russian seaborne oil to try limit Moscow ability to finance its war in Ukraine . The European Union also banned imports of Russia seaborne oil from Dec 5 .
The west action on Russian oil has driven Moscow to seek alternative markets mainly in Asia for about 1 million barrels per day . Since Russian began its invasion of Ukraine in February India has become the main outlet for seaborne cargoes of Urals crude.
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