Indian businesses use Chinese Yuan to buy Russian oil, Moscow "rushes" to send goods to the world

Oil supplies from Russia are steadily increasing, as the country shows signs of becoming increasingly lax in complying with its supply-limiting deal with Saudi Arabia.

Công nhân sắp xếp các thùng dầu tại một nhà máy ở Chennai, Ấn Độ. Ảnh: AFP

Russia's seaborne crude oil exports hit a four-month high. Workers arrange oil barrels at a plant in Chennai, India. (Source: AFP)

According to Bloomberg , the amount of oil transported from Russian ports in the week ending October 22 was about 3.53 million barrels/day, up 20,000 barrels/day compared to the previous week.

That lifted the four-week average to 3.5 million barrels per day, the highest since June and up about 610,000 barrels per day over the past two months.

In early August, Russian Deputy Prime Minister Alexander Novak said that the country would extend plans to cut supply by 300,000 barrels per day compared to the average level in the May-June period, until the end of this year.

According to Bloomberg calculations, oil exports through Russian ports should have been around 3.28 million barrels per day. Thus, the average oil exports in the above 4 weeks exceeded the target by about 220,000 barrels per day.

Rising oil exports lifted Russia’s oil export tax revenue to a new high this year last week, while the four-week average recorded its 12th consecutive weekly increase, the longest streak since mid-January.

* According to Reuters news agency, Indian refineries have started using Chinese yuan to pay for some oil shipments from Russian sellers.

Indian Oil Corporation (IOC.NS), the country's top refiner, has been using yuan and other currencies to pay for Russian oil.

Meanwhile, other state-owned refiners such as Bharat Petroleum Corp and Hindustan Petroleum have also been asked by Moscow suppliers to pay in Chinese currency.

However, according to Reuters sources, the New Delhi government and businesses appear to be “uncomfortable” with the demand to pay in Chinese currency, which has delayed payments for at least seven crude oil shipments from Moscow.

Some Indian refiners say paying in Chinese currency increases their costs.

However, the payment disputes have so far not disrupted deliveries.

Russian companies such as Rosneft are continuing to supply crude to state-controlled Indian refineries.

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