Russian November oil worth for India hit 12-month excessive

India paid a mean of $85.42 per barrel for Russian oil in November, the best because the Group of Seven (G7) superior economies imposed a worth cap of $60 per barrel to chop Moscow’s income, preliminary authorities knowledge reveals.

India paid 1.4% extra for Russian oil in November in comparison with $84.20 per barrel in October, Reuters calculations primarily based on authorities knowledge present.

The information additionally confirmed declining reductions for Russian oil narrowed the worth hole with India’s second largest oil provider Iraq in November.

India paid a mean $85.73 per barrel for provides from Iraq and $93.32/barrel for Saudi oil, the information confirmed.

Because the imposition of the worth cap in December 2022, India has principally paid above the $60 ceiling for Russian oil that had nonetheless proved cheaper than the same grades from elsewhere. June was an exception when costs had been decrease.

Indian refiners purchase Russian oil on delivered foundation from from ports in Greece, South Korea and Spain, in addition to instantly from Russia.

Gross sales from Russian ports at greater than $60/barrel led to the U.S. inserting sanctions on some ships and vessel operators.

Washington additionally tightened guidelines together with toughened scrutiny by banks and repair suppliers to make sure that cargoes don’t breach the $60 per barrel worth cap.

Subsequently, some ships carrying Russian oil for India had been diverted in November and December, denting India’s consumption of Russian oil in December.

Sources had mentioned ships with Russian oil had been diverted on account of fee issues.

Nevertheless, India’s oil minister Hardeep Singh Puri on Wednesday mentioned that the decline in India’s import of Russian oil was due to unattractive costs and never due to fee points.