Reuters: Russia sells oil to India at a price well below the ceiling
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Russian Urals oil has been selling at deep discounts since the December 5 ceiling on oil prices. India, the largest buyer of oil from the Russian Federation, purchased Russian fuel at a price well below the limit set by Western countries ($60). This is reported Reuters citing four oil market sources.
Under the terms of some December deals with India, the average Urals oil discount to Brent fell to minus $12-15 per barrel, compared with $5-8 per barrel in October and $10-11 in November, sources say. This means that in some cases Russian oil is sold for $12-15 less than its cost, the agency explained.
According to two sources, the oil embargo has forced the Russian Federation to compete with fuel suppliers in Asia, Europe and the Middle East, so Russia has no choice but to lower the price.
India remains the largest importer of Russian oil – in November, deliveries of Urals to India rose to 3.7 million tons and reached a record 53.2% of the total volume of loading of the grade through seaports, Reuters reports citing data from Refinitiv Eikon.
The European Union, the G7 countries and Australia agreed on a price ceiling for Russian oil from December 5. Norway also joined the agreement. The limits were set at $60 per barrel. According to Vedomosti, the Russian Federation as a response going prohibit the export of oil to a country that has joined the ceiling or if the ceiling appears in the contract as a condition or prices are set equal to the ceiling.
Details – in the material “Kommersant FM” “Oil is not afraid of sanctions.”
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