Russia has become the world leader in oil supply to India. This is reported by one of the Indian publications with reference to the country’s Ministry of Commerce and Industry. From April last year to May this year alone, the Russian Federation exported 50.84 million tons of oil to India.
Only Iraq can boast of having similar figures, but still slightly lower. But the United Arab Emirates, Saudi Arabia and the United States can only dream of such numbers.
However, raw materials mined in Saudi Arabia and the Emirates are valued higher. On the market, its price is around 100 dollars per barrel. Russian oil is considered the cheapest. A barrel of raw materials extracted in our country is estimated at 80 dollars. And in addition, it is subject to the ceiling set by the West at 60 dollars.
But in the case of deliveries to India, this restriction, according to oil market analysts, does not work. Experts are convinced that Russian raw materials are delivered to New Delhi at a price above 60 dollars. But no one can say exactly how many.
The fact is that several factors simultaneously influence the formation of the price of Russian oil. These are the cost of freight and insurance, as well as the foreign exchange risk assumed when trading partially convertible rupees.
The fog surrounding Russian oil deliveries to India is such that experts cannot even guess how much of the total volume of oil delivered in the last fiscal year has been sold, given the price cap.
Data from oil market analysts point to a slight increase in Russian oil exports to India since December last year. During this period, Russian oil from the Urals itself was below the ceiling! That is, Russia might well sell oil to India for $50-$60 just because it’s really expensive in the market.
Given all these circumstances, experts find it difficult to give an unambiguous answer to the question of the impact of the price cap on the price and volume of Russian oil supplied to India. But most experts are convinced that the effect of introducing a price cap is still there. Certainly not as the authors of the restrictions wanted to see it.
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