INDIA’S CRUDE IMPORTS MAY BOOST

Moscow to ban the export of crude oil...

Russian President Vladimir Putin announced a strict price cap on the supplies from Moscow and already imposed a bulk ban on Russian oil exports. The recent move by the kremlin may affect some residual volumes, still being imported to Europe via pipelines.

The decision was taken by Moscow to ban the export of crude oil to potential western buyers supporting the price cap may boost the imports for India of Russian crude oil.

On Tuesday the announcement shared by Putin, which came in the form of a decree, signed by the president and released by the Kremlin. The announcement stated that no Russian crude oil will be exported to any country that accedes the price cap from Feb 1 and the last five months. This decision will leave Russia with an excessive quantity of crude oil. Where Moscow would like to absorb through India and China.

However, China is struggling to deal with the rise in the Covid situation, and it could not meet the demand for additional Russian crude supplies according to the Indian refinery executive. “This would provide India with an opportunity to import more from Russia,” said by an unidentified Executive. He further added that this would give India a chance for a greater bargaining power over prices.

The United States and its allies have prohibited their shippers, financiers, and insurers from supporting any trade in Russian oil at prices greater than $60 per barrel. The executive believes that the Russian ship will be helpful for oil-grade trading above the price cap. In November, The Urals represented approximately 80% of India's Russian crude-oil imports.