New DelhiA few moments ago
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Refineries like Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have decided not to buy oil from Russia in the next binge cycle from Russia.
India’s government oil refineries have cried for the purchase of crude oil from Russia for now. The reason for this is believed to be the increasing pressure of America. Due to buying oil from Russia, US President Donald Trump has announced a tariff of up to 50% on India’s exports.
The US wants India to stop purchasing oil from Russia. This step is part of the American strategy to pressurize Moscow to eliminate the Russia-Ukraine war. Bloomberg, in one of its reports, has given this information quoting sources.
Government refineries will not buy oil from spot market
Refiners like Indian Oil, Bharat Petroleum and Hindustan Petroleum have decided not to buy the oil spot market (immediate purchase) from Russia in the next bing cycle. This decision will be applicable to the purchase of crude oil loaded in October.
The people associated with the case told Bloomberg that these refineries are waiting for the government to get clear guidelines so that they can give new orders. These people placed a condition for not expressing their names, as they are not allowed to talk to the media.
However, private refiners such as Reliance Industries and Naira Energy, which are associated with Russia’s Rosneft, continue to purchase oil under their old contracts.
The spot market is the market where the purchase and sale of goods like oil, gas is immediately and delivery is also done quickly. Prices are fixed at the current market rates.
India is buying oil from Russia, so penalty is imposed
US President Trump has doubled tariffs on India’s exports to 50%. The US administration says that this step has been taken as a punishment for India to continue oil trade with Russia. The interesting thing is that the US has not taken any such step against China, while it is another big oil buyer from Russia.
India increased oil from Russia after Russia-Ukraine war
After the commencement of Ukraine War, India had increased oil imports from Russia to more than 2 million barrels per day at its peak. But now, this figure may be reduced due to hesitation in giving new orders for refineries. Experiences believe that if India reduces oil purchases from Russia, Russia may have to sell oil at cheap prices. Perhaps he offers more offers to China.
India can take middle East oil instead of Russian oil
If Indian refineries reduce or stop the purchase of oil from Russia, it can choose the option of oil purchase from the US, Middle East and African countries. At the same time, private refineries like Reliance Industries and Naira Energy have not yet said anything about this matter.
Former Refinery Director of Bharat Petroleum, R.K. Ramachandran told Bloomberg that short -term obstacles could be handled. He said, “There may be operational problems for some time, but the oil supply and demand will be balanced.”
He said that due to the geographical proximity of the middle East and having many varieties of oil, it is a natural option for Indian refineries.
