INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The love affair with Russian oil appears to be losing its charm for Indian refiners as discounts have shrunk to $4 per barrel
from peaks of $25-30, with sellers going dark on shipping rates to cover the gap with benchmark Brent crude and skirt western price cap,
Indian refiners began lapping up Russian crude as sellers began offering hefty discounts as Western buyers shunned those barrels as the US
and the EU slapped sanctions on Russia, including its energy exports.Indian refiners buy Russian oil on delivered basis, wherein the seller
arranges shipping and insurance, to avoid falling foul of the sanctions
This aspect became more important after the G7 slapped a price cap of $60 for seaborne Russian energy exports, making shipping or insurance
They are charging $11-19 per barrel freight from Baltic or Black Sea ports, or nearly double the normal, while invoicing the crude at $1-2
further and narrow the gap with the G7 price cap
These are not linked to global benchmarks
said.Moscow is believed to have built up a tanker fleet by shadowy shipping companies that are believed to be moving about a quarter of the
India is the only major buyer left where the consumption is growing apace at 5-6% annually
Rosneft for 6 million tonne of crude, reportedly locking in a discount of around $8 per barrel.
