Suchi News
India’s increase in purchases of Russian crude oil after Moscow’s invasion of Ukraine last year appears to have provided a savings of about $ 2.5 billion in the first three quarters of the current fiscal year, an analysis of India by India. trading information for the period shown. However, the savings, while substantial for India, were much lower than many had expected amid reports of deep discounts offered by Russia.
According to the analysis, cheap Russian oil lowered the cost of imports for India – the world’s third largest exporter of crude oil – by about $2 per barrel in the nine months. The average price of imported goods for April-December was $99.2 per barrel. If Russian barrels are excluded from the number, the average price rises to $101.2 per bbl.
The total value of India’s oil imports for the period under review was $126.51 billion. The analysis suggests that if Indian refiners had paid for Russian oil the normal price they paid for it from other suppliers, the bill would have been oil imports were nearly $129 billion, up about 2 percent. The value of imported oil from Russia for the period is almost $ 22 billion.
The average price of Russia to India for April-December was $90.9 per barrel, which is about $10.3 lower than the average price of non-Russian barrels. This translates into an effective reduction of 10.1% in the estimated cost of imports. Although large, this reduction is much lower than what has been said in various reports from India and abroad. According to business owners, the difference can be due to the high cost of cargo and insurance for Russian oil, compared to other traditional buyers. With Moscow facing Western sanctions over the Ukraine war, freight and insurance costs for Russian oil exports have reportedly skyrocketed. Therefore, while the reductions may be deeper on the price of oil, the reduction on the cost of loading – including freight and insurance costs – will certainly be lower.
In early February, Goldman Sachs said, Reuters reported that buyers in Asia may have paid more for Russian oil than the stated price. “We argue that the resilience in production so far may reflect that the actual price paid for Russian oil is likely to be much higher than the price quoted, ” Goldman Sachs said in a February 10 statement cited by Reuters. Indian refiners began stockpiling Russian oil, angering much of the West, which wanted to shun Russian oil. purchase to prevent Moscow’s ability to finance the war in Ukraine through oil sales. So far, India, a major oil importer, has maintained that it will buy oil from anywhere. can get a good price. Recently, the Oil Minister Hardeep Singh Puri said that India will play the market to ensure oil supply at reasonable prices. India is the world’s third largest oil consumer and depends on imports to meet 85 percent of its demand. The analysis of trade data shows that the effective reduction on the production of Russia is very different from one month to another during April-December. The discount was as low as April at $0.6 per barrel and as high as May at $15.1 per barrel on average world import prices in those months. In percentage terms, the reduction varied between 0.6 percent and nearly 14 percent.
Russia’s crude oil accounted for 19 percent of India’s April-December crude oil output of 173.93 million tons, or 1.27 billion barrels. From being an insignificant supplier of oil to India, Russia replaced the likes of Saudi Arabia and the United Arab Emirates to become India’s second largest oil supplier in April-December behind Iraq. In fact, Russia was India’s largest oil supplier in September-December.
The government has released national trade data with a flaw. The most recent data available includes the first nine months of the current fiscal year and data through January is expected in March.
It should be noted that the price of oil depends on the condition of the oil and their prices can vary greatly. Since import data was not available, the average prices of raw materials and imports in each country during April-December were used for the calculations.
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