Stopping the import of Russian oil will allow the world’s third largest oil importers and consumers to rely on limited options, possibly increasing demand and solid supply of global crude prices up to $ 100 per barrel.
The Brokerage CLSA reported that “Russian oil imports are less than the number of exaggerated media.”
“From Russian crude imports to India, a few media outlets of $ 2 billion to $ 2 billion are estimated, while we have a net annual benefit to India from Russian crude imports only 9. Billion is less than $ 9 billion or GDP of India.
After the Ukraine war, the import of Russian oil in India increased dramatically and has increased by 40 percent at a distance of less than 1 percent of total crude oil imports.
This was a sharp increase in Russia’s strong exemption after the purchase of some Western countries to punish the Ukraine attack by Moscow. The shift helped India to supply affordable energy, while the Trump administration criticized the purchase and accused the Nafi by buying Russian oil in New Delhi and exporting sophisticated fuel to the regions including Europe. With no approval on buying Russian crude, India has said that its actions do not violate any international law. The European Union recently banned importing fuel from Russian crude. In addition, the United States did not approve the purchase of Russian crude oil or its refined products.
Currently, India imports 36 percent of its oil from Russia. Crude 36 per cent (1.8 MBPD) crude oil from the first supplier of Russia came from the first supplier of Russia in the day4..4 million barrels (MBPD) imports. Saudi Arabia (1 per cent), Iraq (5 percent), UAE (Cent percent) and USA (Cent percent) are other major crude oil supply supplies.
Many European Union countries have banned Russian oil imports, while pricing for other countries buying Russian crude oil. Indian imports have followed the cap cap.
Russia exports about 4.3-8..8 MBPD (production of .2.1 MBPD), which is Cent percent of the total crude oil supply. Apart from India, China is the second largest importer of Russian crude oil, importing approximately 2 MBPD oil from the country over the past year.
Stating that the net benefit of the Russian crude of the discount was much lower than the media report, CLSA said that the caption suit for Dubai crude against Russian crude looks larger than its $ 60, especially when Brent Crude prices rise by more than $ 75 per barrel.
“However, the net profit for Indian importers is much smaller than this visible discount, because there are many shipping, insurance and reconstructed restrictions for Russian crude. Therefore, Indian refineries import Russian crude on the basis of cost, insurance and freight (CIF).
Indian oil marketing companies (OMC) have highlighted that the Russian crude discount is about $ 8.5 per barrel in the financial year 24, but the discount has fallen to $ 3-5 in the financial year and has gone up to $ 1.5 per barrel in recent months.
“The average annual benefit of Indian importers captured by Indian importers in the financial year 1 in, means equal to the GDP of India’s GDP, however, the current discount will reduce the annual profit from this import to only $ 2 billion,” the report said.
Although it is easy to look at Russian crude oil imports in isolation, refinement is a business where one needs to keep a balanced slate of input crude. So, refineries are also essential for buying good quality, more expensive crude oil for the highest route of poor quality Russian crude. Therefore, in order to know the real profit of Russian oil imports, one needs to check if one has earned a profit at the average price of imported crude.
“Surprisingly, the government’s import figures do not show any clear profit from the import of Russian oil, as the price of Indian crude oil imports has gone up in the premium in the last few years compared to the Dubai Pre-FY1.
It is said that the cost of crude oil converted into fuel such as petrol and diesel can increase by $ 90-100 per barrel if India stops importing Russian oil. “With only a few buyers buying Russian crude, any stoppage in India may be difficult for Russia to find buyers for 1 million BPD or 1 percent of the global supply in the near future.
The CLSA argued that the import of Indian Russian oils is highly inspected on crude oil prices, and prevents global inflation. “By setting aside economics, we believe that the issue of Russian raw oil imports has now become a political, and India has repeated the freedom to choose its trade partner in the field of global trade rules.”
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