Russia offers oil at big discounts to India

Russia offers oil at big discounts to India.

According to Bloomberg, Russia offered India a substantial $ 35 barrel discount on oil prices as international pressure increased following the occupation of Ukraine and reduced appetite for its barrels.

Affected by the sanctions, the country offers India a fixed discount of $ 35 on the pre-war Urals and pre-war prices.

Since then, headline Brent prices have risen by about $ 10, indicating an even bigger reduction from current prices. Russia wants India to take 15 million barrels contracted for this year, and talks are underway at the government level.

India imports more than 80 percent of its crude oil demand. It imported 193.5 million tonnes of crude oil at a cost of $ 105.8 billion as of February this year. The total consumption of petroleum products in the country during this period was 183.3 million tonnes. Crude oil in the country comes mainly from the Middle East and the United States.

From Russia, throughout 2021, the country purchased just 12 million barrels of oil, which is only 2 percent of its total imports. India's own domestic production is much higher than that.