A recent report by analytics firm Kpler showed India has become Europe 's largest supplier of refined fuels this month while simultaneously buying record amounts of Russian crude The reliance of Europe on Indian crude oil products has surged. This increase can be linked with the ban on Russian oil.The data also showed that Europe's refined fuel imports from India are set to surge above 360,000 barrels a day, edging just ahead of those of Saudi Arabia.The development is a double-edged sword for the European Union. On the one hand, the EU needs alternative sources of diesel now that it has cut off direct flows from Russia, which was previously its top supplier. However, it ultimately boosts demand for Moscow's barrels, and means extra freight costs.It also means that more competition for Europe's oil refiners which can't access cheap Russian crude, and it comes amid wider market scrutiny about where the region's diesel imports are coming from.Russian crude oil arrivals to India are expected to surpass 2 million barrels a day in April, representing almost 44 per cent of the nation's overall oil imports, reported ANI, citing the Kpler data.Russia emerged as a major supplier to India for the first time in 2022-23 (FY23) after it started giving oil at discounted rates amid the Ukraine war. Despite concerns raised by the West to India's imports from Russia during the war. India has taken a strong stand and said that it looks at all options to achieve energy security.Russia was the largest exporter of crude oil to India by value in February in spite of the western price cap of USD 60 per barrel, according to the data from the Union Ministry of Commerce and Industry. Crude imports from Russia in February stood at USD 3.35 billion, followed by Saudi Arabia at USD 2.30 billion and Iraq at USD 2.03 billion.The price cap kept by the western countries was designed to limit Russian oil revenues while keeping the oil itself flowing to avoid a global price shock.(With inputs from ANI)
PhilosopherHeavy5032 on May 8th, 2023 at 12:25 UTC »
Buy low sell high.
PangolinZestyclose30 on May 8th, 2023 at 12:21 UTC »
Looks like the price cap is working as intended. India is buying so much oil from Russia only because it's so cheap → low profit margins for Russia.
Nomustang on May 8th, 2023 at 12:07 UTC »
SS: A report by Kpler has revealed India to be the largest supplier supplier refined fuel to Europe while also buying record amounts of Russian crude oil.
Imports from India are set to go above 36,000 barrels per day surpassing Saudi Arabia.
While the EU needs alternate sources of fuel, the imports means an increase for Russian barrels and higher freight costs.
Russia became the largest exporter of crude oil to India in Crude oil to India in February despite price caps which were designed to limit revenue to Moscow but also to keep oil flowing to prevent a global price shock.