Oil prices are likely to remain high in more than $ 100 per barrel for the rest of this year due to the Russian invasion of the Ukraine Market ROILS and change the flow of trade, according to the Top India refinery, Indian Oil Corporation (IOC).
The impact of the war in Ukraine will also slow down the global economic growth this year, IOC’s Director of Finance, Sandeep Kumar Gupta, said at an event on Friday, as brought by Reuters.
IOC is one of the many Indian rectors who have increased the purchase and import of Russian crude oil over the past few months, interested in sharp discounts from Russian values compared to oil from other countries. On Thursday, a discount in which Russian crude oil, Urals, sells at $ 35 per barrel below the international benchmark, Brent, which is traded at a price of $ 111 per barrel on Friday.
Only a few months ago, India was a small and unimportant Russian oil buyer. Following the Russian invasion of Ukraine, a steep discount, where Russia sells its oil to Asia after the prohibition and western sanctions against Moscow, has attracted many Indian buyers.
Since April, Indian crude oil imports from Russia have jumped more than 50 times, to the point representing 10 percent of all Indian imports, a senior government official told business standard this week.
So far this year, India is estimated to have now been imported five times the number of all Russian crude oil purchased throughout 2021.
Russia is even thought to have followed Saudi Arabia to become the second largest supplier of crude oil in India in May. The average daily level of Russian oil exports to India reached 819,000 barrels last month, compared to 277,000 barrels per day (BPD) in April.
Interested in low prices, India, and China, continue to increase the import of Russian crude oil, which is now mostly prohibited in the West.
By Tsvetana Paraskova for Oilprice.com
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