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India Buys Russian Crude at Deep Discounts
1 Dec
Summary
- India's state refiners bought Russian crude for January delivery.
- Purchases were motivated by significant price discounts.
- The crude was secured from new trading entities at a discount.
Indian state-run refiners, including Indian Oil Corp. and Bharat Petroleum Corp., have recently acquired Russian crude oil destined for January delivery. These companies were drawn to the opportunity by significant price reductions and the consistent availability of supplies from sellers not subject to international sanctions.
The procured cargoes were obtained at a substantial discount, estimated at around $5 per barrel below the Dated Brent benchmark. This favorable pricing was offered by newly established trading entities, according to sources familiar with the transactions. This discount represents an increase compared to the more modest $3 per barrel reduction observed in the preceding month.
The strategic move by Indian refiners highlights their responsiveness to market fluctuations and their pursuit of cost efficiencies in securing essential energy resources. The availability of discounted Russian crude provides a compelling economic advantage for India's energy sector.
