India's diplomacy adopted such a unique way of importing oil that the whole world was shocked | Crude Oil News.

 

India's diplomacy adopted such a unique way of importing oil: 

This year war broke out between Russia and Ukraine, so the prices of food items and crude oil reached the sky all over the world. Petrol and diesel prices in India were likewise a headache for the people. In such a situation, when crude oil became more expensive, a big challenge arose in front of the government. The challenge is where to get cheap crude oil. Where can people get some relief?

India's diplomacy and strategy took such a unique approach to this matter, that the whole world was shocked and this story is very interesting. Because of this also India has defeated China in this matter. Happened that due to the war in Russia-Ukraine, Western countries imposed strict economic sanctions on Russia. Russian companies were also banned from doing business with the rest of the world.

India got a big opportunity from here. There was an opportunity to buy crude oil at a low price from Russia. By the time China and other countries could think of it, India had also bought oil in large quantities from Russia. Today, India has captured the oil market of Russia, once dominated by China. Even though India gets only a small part of its crude oil requirement from Russia, it has created a stir in the entire oil market.

The challenge of saving its economy from the restrictions imposed by the war had arisen in front of Russia. To avoid this, Russia reduced the prices of crude oil. Global crude oil reached $ 120 a barrel after the Russia-Ukraine war broke out. But in recent weeks the price of crude has come down to $100. At present, Brent crude remains at $ 95 per barrel, and WTI crude is near $ 89 per barrel.

When crude oil reached above $ 100, Russia offered a discount of up to $ 30 per barrel on its crude and India reduced the import of crude oil from Middle East countries and started buying more oil from Russia. In this way, not only did it help in saving money, but the government was also successful in giving cheap oil to the people. Not only this, but India also increased the purchase of such grade of oil from Russia, which it did not usually take.

Talking about August itself, 6 ships filled with ESPO crude from Russia have come to India, India's biggest purchase of crude so far. In terms of total available monthly shipments, this figure works out to be around 20%. India usually used to buy only this grade of crude, but since it is available at a lower price. In such a situation, India is busy buying it fiercely.

The good thing is that there is no restriction on this entire trade. India has bought crores of barrels of crude oil at a cheaper rate since February. Giving evidence of its strong foreign policy, India did not care for the outrage and criticism from Europe and America. On several occasions, Minister of External Affairs S. Jaishankar made it clear to Europeans and US that taking oil from Russia is the right decision for India. Significantly, India is the third largest crude oil importer in the world.

Since the start of the war, India first showed a tremendous increase in the purchase of Russia's flagship Ralph Crude. Now India is fiercely buying ESPO crude. It is also worth noting that this ESPO crude has been a favorite of china and in this case, India pushed China back. India is finding this ESPO crude oil cheaper than the Middle East crude oil.

The funny thing in this anecdote is that China's Sino Pack has recently reduced the purchase of ESPO crude, and as soon as this happened Indian refinery jumped into this fray. Now China is watching this game against India. Whether government companies like Indian oil or private companies like Reliance and Nayara Energy, the coin of Indian companies are running on the Russian oil market these days.

India was not a big player in this business till the beginning of this year. Indian companies did not consider ESPO's small cargo size of 1 lakh tones to be suitable for long and expensive journeys. As a result, South Korea and Japan compete fiercely for 30 to 35 shipments of crude every month. Indian companies that came on oil discounts changed the whole game of oil.

China is the most surprised by the reversal in Russia's oil market. India's oil purchases from Russia declined in August, but largely because of three reasons. One is the reduction of discounts on Russian oil and secondly, the overall crude oil imports in India have decreased. Apart from this, India has also gotten relief from the recent crude falling below $100.

At present, Russia has reduced the discount on crude to 5 to 6 dollars per barrel. Due to this, the refinery is also looking at other markets. India's crude import from Russia in August stood at 7,38,024 barrels per day. This figure is lower by 24.5% compared to June, but in August, India's overall crude imports fell by 13% compared to July to more than 4 lakhs. Compared to June, it has come down by 15%.

India's major oil supplier topped the market share with 20.8% in August, followed by Saudi Arabia with 20.6% market share, followed by Iraq and Russia with 18.2%. America's share is 4.6%. Well, the import of oil from Russia and the dominance of India in the Russian oil market have entangled China. The special thing is that as long as cheap oil will be available from Russia. It will continue to be an important market for India. 

At present, the government has the only way to provide cheap petrol and diesel to the common people. We hope you like the article. If you have any questions, please comment on our site www.tradeipohub.co.in. Thanks for reading.