{"id":1459891,"date":"2024-02-29T02:00:00","date_gmt":"2024-02-29T07:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1459891"},"modified":"2024-02-29T02:00:00","modified_gmt":"2024-02-29T07:00:00","slug":"indias-oil-supply-from-russia-threatened-by-new-us-sanctions","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/indias-oil-supply-from-russia-threatened-by-new-us-sanctions\/1459891\/","title":{"rendered":"India’s Oil Supply From Russia Threatened by New US Sanctions"},"content":{"rendered":"

India’s Oil Supply From Russia Threatened by New US Sanctions<\/span><\/p>\n

\n

By Tsvetana Paraskova of OilPrice.com<\/a><\/em><\/p>\n

Indian refiners are concerned that the latest U.S. sanctions against Russia could further impact their ability to import cheap Russian crude as freight rates are set to rise and dent refining margins, industry sources in India have told\u00a0Reuters<\/a>.<\/p>\n

<\/a><\/em><\/p>\n

The U.S.\u00a0levied<\/a>\u00a0new sanctions against Russia last week, on the second anniversary of the Russian invasion of Ukraine and in response to the death of opposition politician and anticorruption activist Alexey Navalny.<\/p>\n

Among the 500 targets of the new sanctions, the U.S. Treasury and State are targeting Russia\u2019s tanker operator Sovcomflot and more than a dozen crude oil tankers linked to the Russian state firm.<\/p>\n

Refiners in India are now concerned that the new sanctions would make it more difficult to have oil shipped from Russia on non-sanctioned vessels, which would raise shipping costs and eat into the refining margins, according to Reuters\u2019 sources.<\/p>\n

India will still buy crude from Russia but only if it is sold below the G7 price cap of $60 per barrel and is shipped on non-sanctioned vessels, an Indian government source told Reuters.<\/p>\n

Even before the latest U.S. sanctions, Refining margins for India\u2019s biggest state-owned refiners\u00a0had dropped<\/a>\u00a0amid more difficult access to Russian crude and soaring freight rates due to the Red Sea disruption to shipments, analysts and traders told\u00a0Bloomberg<\/a>\u00a0last week.<\/p>\n

For most of 2023, Indian refiners enjoyed high refining margins and profits as they imported cheap Russian crude at $20 a barrel and more below international benchmarks.\u00a0\u00a0\u00a0<\/p>\n

The decline in refining margins is due to higher costs for Indian refiners because of higher competition for Russian supply in Asia, increased freight costs, and tougher U.S. sanctions enforcement, which has limited India\u2019s access to very low-priced crudes from Russia.<\/p>\n

The tougher enforcement of the G7 sanctions and related payment issues have been\u00a0holding up Indian purchases<\/a>\u00a0of some cargoes of Russian crude oil, with tankers previously headed to India turning back eastwards, tanker-tracking data monitored by\u00a0Bloomberg<\/a>\u00a0showed early this year.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 02\/28\/2024 – 21:00<\/span><\/p>\n

\u200bRead More<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

India’s Oil Supply From Russia Threatened by New US Sanctions By Tsvetana Paraskova of OilPrice.com Indian refiners are concerned that the latest U.S. sanctions against…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1459891","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1459891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1459891"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1459891\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1459891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1459891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1459891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}