India To Continue Buying Russian Oil, Ministry Source Says
2 mins read
Published on December 31, 2022
India will continue buying Russian oil and even look for term contracts as sanctions allow purchases provided that Western services are not used, an oil ministry source said on Friday.
The comment comes a day after European Union governments tentatively agreed on a $60 a barrel price cap on Russian seaborne oil, which comes into effect on Dec. 5.
After Dec. 5, Western shipping and insurance companies would be prohibited from handling Russian oil sold above the price cap.
"There is a lot of opacity in term of what the rules of the game are... There are always options to buy Russian oil," the source said, without elaborating.
Indian refiners would continue to lift Russian oil beyond Jan. 19, he added.
Vessels of Russian petroleum that are loaded before Dec. 5 and unloaded at their destination before Jan. 19, will not be subject to the price cap planned by Western governments, the United States said last month. The G7 and the EU plan to impose the price cap as part of sanctions against Russia for its invasion of Ukraine.
While India has emerged as the top buyer of Russian oil behind China as refiners snap up discounted crude shunned by Western nations since the invasion of Ukraine, Moscow has become New Delhi's second biggest oil supplier, replacing Saudi Arabia, after Iraq, data from trade sources show.
Indian refiners, which mostly buy Russian oil on spot basis, would consider signing term deals with Russian oil if pricing terms are favourable for sustained supplies, the oil ministry source said.
He said global oil producers have assured India, the world's third biggest oil consumer and importer, that there will be no supply disruption.
On a gas supply halt under a 22-year deal between India's state-run GAIL (India) Ltd and Germany's Sefe, which comprises former units of Russian gas major Gazprom, the official said India would like to amicably resolve the issue with the Russia and Germany.
"(The) focus is to get gas and we are looking at ways of settling the dispute... We are talking to both Germany and Russia to resolve the issue," he said.
Great Deals on Used CarsView All Used Cars
- 85,000 km
- 70,123 km
- 49,000 km
- 83,000 km
- 55,000 km
- 75,000 km
- 41,489 km
- 1,18,054 km
- 77,000 km
- 44,300 km
-19339 second ago
The imminent plan to deploy charging stations was shared by the chairman of the Adani Group Gautam Adani.
-17689 second ago
Owners can avail of these services until December 31, 2023.
-13004 second ago
Special services also include complimentary towing, expedited insurance claims and repairs, and special offers on new vehicles in case the car is a total loss.
-11227 second ago
The S1 X+ comes with a 3 kWh battery pack and has a claimed range of up to 151 km.
12 hours ago
The latest iteration gets a slew of updated features and mechanical upgrades.
13 hours ago
The brand is offering free service support through its dealer network in Chennai and other affected areas.
14 hours ago
Toyota and its dealer partners have set up a special emergency helpline number and have a deployed the Hilux pickup for rescue and movement of submerged vehicles
17 hours ago
Starting from December 8, 2023 customers affected by the flash floods can avail free RSA, engine check-ups and other service benefits at the Yamaha service centers
18 hours ago
MG Motor India has introduced a December Fest sale with sizable benefits across its lineup with offers valid until December 31
18 hours ago
Ducati said that the price increase was due to a rise in operational costs and will affect select motorcycles on sale
Brent crude futures rose 1.8%, to settle at $76.69 a barrel, while U.S. West Texas Intermediate crude (WTI) ended $1.23 higher at $70.90.
India has been the biggest buyer of Russia's benchmark Urals grade crude in March.
Brent crude settled down 1.2%, to $74.99 while West Texas Intermediate U.S. crude futures fell 1%, to $69.26 a barrel.
Brent crude futures fell by 78 cents to settle at $75.91 a barrel. U.S. West Texas Intermediate crude futures slid by 94 cents, to end the session at $69.96 a barrel.
According to the International Energy Agency (IEA), Russia's total exports of oil and petroleum products in February 2023 fell to 7.5 million barrels per day (bpd), from an average amount of 7.7 million bpd in 2022 (7.5 million bpd in 2021).