India shows no sign of slowing down purchases of Russian oil

Russia’s crude oil inflow to India is expected to reach 3.36 million tons May, according to Refinitiv estimates. This is nearly nine times higher than the 2021 monthly average of 382,500 metric tons.

Overall, since ukraine war Refinitiv added. Russia’s Urals oil is currently trading around $95 a barrel, while Brent, the global benchmark, is trading above $119 a barrel.

Part of the reason for the price difference: The West shunned Russian oil. On Monday, the European Union agreed to ban 90 percent of Russian oil imports by the end of the year. Europe is the biggest buyer of Russian energy.

US, Canada, UK and Australia have already banned import.

Embargoes from huge importers like Europe will weigh on the Russian economy, but Moscow has found other buyers in Asia.

India, import 80% Its oil, usually buy only about 2% to 3% from Russia. But with oil prices soaring this year, the government has steadily increased imports from Moscow using deep discounts.

Crude oil flows from Russia to India surged to 1.01 million tonnes in April from 430,000 tonnes in March, according to Refinitiv data.

India’s oil and gas ministry did not immediately respond to questions about the impact the partial EU ban would have on the South Asian economy’s oil ties with Moscow.

In early May, India downplayed its import peak. The oil and gas ministry said in a statement that the country imports oil from all over the world, including large quantities from the United States.

“Despite attempts to describe it otherwise, energy purchases from Russia remain insignificant compared to India’s total consumption,” the ministry said in a statement. “Legal energy deals in India cannot be politicized,” it added.

The world’s largest democracy has not taken a hard line against Moscow over the Ukraine war.Russia and India have one a long history Friendly relations date back to Soviet times, when the Soviet Union helped India win the 1971 war with Pakistan.
India is not the only big Asian country to buy Russian oil.China has historically been the largest single buyer of Russian oil and is expected to continue crazy shoppingalso.
Oil X, Companies that use industrial and satellite data to track oil production and flow found that China’s oil imports from Russia via pipeline and sea rose by 175,000 barrels per day in April, about 11 percent more than the 2021 average. Seaborne imports rose more rapidly in May, according to earlier data.
Demand expected to pick up as world’s second-largest economy begins loose It has imposed severe Covid-related restrictions in major cities.

EU pushes forward with partial ban

Despite a surge in Asian purchases of Russian crude, the European Union decided on Monday to block most purchases until the end of the year.

According to Eurostat, Russian crude oil will account for 27% of EU imports in 2021.

European Commission President Ursula von der Leyen told a news conference that the use of tankers to transport Russian oil will be banned, while the southern section of the Druzhba pipeline will be exempted.

The northern section of the pipeline serves Poland and Germany, which agreed to the embargo. The south goes into Hungary, Slovakia and the Czech Republic, which account for 10% of Russia’s oil imports.

After embargo, Moscow may look for new customer Be more positive, but it’s not easy.

Most of Russia’s oil exports to Europe are shipped to the EU via pipelines. Getting that oil to Asian markets takes years to build with expensive new infrastructure.

— CNN’s Julia Horowitz and Vedika Sud contributed to this report