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New US Sanctions: Due to the tariff war started by America, all the countries are being forced to compromise with it. In this context, India is also continuously talking to the American representation.
New US Sanctions : The issue of US President Donald Trump imposing tariffs on countries around the world has created a stir. In this series, India is also busy in making a trade deal with America. Apart from this, it is being claimed in some media reports that due to continuous pressure on India from America, there may be a reduction in the crude oil imported from Russia. Experts said that India’s import of Russian crude oil (petrol and diesel) is expected to reduce rapidly soon, but will not stop completely. At the same time, the ban imposed by the US President on Russia’s two largest oil companies Rosneft and Lukoil has become effective from November 21. Now the crude oil firms associated with it have become a ‘sanctioned molecule’.
Fall in Russian oil prices
India’s crude oil import from Russia this year stood at 1.7 million barrels per day and is expected to be 1.8-1.9 million in November. The matter is that refiners are making more and more discounted purchases. India, traditionally dependent on oil from the Middle East, significantly increased its imports from Russia after the attack on Ukraine in February 2022. It is being told that due to sanctions imposed by Western countries and low demand in Europe, Russian oil started becoming available at huge discounts. This is the reason why India’s Russian crude imports have increased from 1 percent to about 40 percent of its total crude oil imports in a very short time. Russia remained India’s top supplier, which has led to a significant decline in Russian crude oil flow to India, especially in December and January. However, after October 21, the loading has become slower than before.
There will be a huge shortage at the end of this year
At the same time, Sumit Ritolia, Lead Research Analyst, Refining and Modeling of Kepler, said that we expect that there may be a significant reduction in the flow of Russian crude oil to India in December and January. Also, the loading has already slowed down since October 21st. Due to the ban, Reliance Industries, HPCL-Mittal Energy Limited and Mangalore Refinery and Petrochemicals Limited have stopped imports for the time being. Now no Indian refiner wants to take the risk of dealing with an OFAC-designated entity. The announcements made by America are targeting most of the companies.
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