India 'locks in' to buy cheap oil from Russia; Moscow's revenue falls despite increased export volume

India has said it is ready to continue buying relatively cheap oil from Russian companies licensed to export and is ready to buy from the lowest-priced seller. Russia's oil revenues have fallen sharply due to falling prices for "black gold" on the world market.

India will continue to buy cheap Russian crude oil. (Source: RT)

Indian Petroleum Minister Hardeep Singh Puri shared this in an interview with Reuters news agency at the Gastech conference in the energy sector held in Houston (USA) recently.

According to him, India would definitely buy from the cheapest supplier if they were not sanctioned.

India, the world's third-largest crude importer, meets more than 85 percent of its oil needs from imports, with demand rising as the country seeks to boost its economy and expand its refining capacity.

Over the past two years, New Delhi has become Moscow's main oil customer.

Russia is selling oil at lower prices because of sanctions and restrictions on crude exports to Western countries. The lure of cheaper crude has made Moscow the largest single supplier to the South Asian country.

In July 2024, India even surpassed China to become the largest buyer of Russian crude oil, as Beijing's refineries reduced crude imports due to falling profit margins and weak fuel demand.

President Putin's country accounted for a record 44% of India's total oil imports in July 2024, according to data from trade and industry sources compiled by Reuters .

Indian state-owned refiners have begun discussing terms to hammer out a long-term oil supply deal with Russia, a source familiar with the matter said.

The South Asian country needs “stable” oil supplies to fuel its expansion of refining capacity, the source said.

*According to Bloomberg news agency estimates, the value of Russia's crude oil exports has decreased by nearly 30% since the end of June 2024, due to the decline in crude oil prices on the international market.

The increase in export volumes could not offset the impact of the drop in oil prices in recent weeks.

Russia's Urals crude is currently trading below $60 a barrel, the ceiling imposed by the European Union (EU) and the United States if Moscow uses the services of Western shipping, insurance and financial companies to transport crude.

Brent North Sea crude oil prices are currently below $75 a barrel, after hitting a near three-year low of below $70 a barrel last week.

Crude exports from Russian ports averaged 3.21 million barrels a day in the four weeks through Sept. 15, according to tanker-tracking data and port reports compiled by Bloomberg .

However, higher oil exports were offset by lower oil prices, which in turn reduced Russia's revenues.

Russia's four-week average oil revenue has fallen to about $1.5 billion a week, the lowest since February 2024, according to Bloomberg estimates.

Source: https://baoquocte.vn/an-do-chot-se-mua-dau-gia-re-tu-nga-doanh-thu-cua-moscow-giam-du-khoi-luong-xuat-khau-tang-286829.html