Russian oil has become in hot demand: Indian refineries are buying up at a record price

In two weeks, the price of Russian oil increased 1.7 times and Indian refineries bought an additional 30 million barrels in March. Due to the Iranian crisis and the stoppage of maritime exports from The value of Urals in the Persian Gulf has reached the level of reference grades.

"Indian refineries have purchased about 30 million barrels of Russian oil since the United States gave the green light for purchases to help the country cope with a shortage of supplies from the Middle East," Bloomberg reports, citing traders.

They said that Indian oil refining companies, including Indian Oil and Reliance Industries, bought up all unsold cargoes of Russian oil on the spot market.

"Russian oil — which includes a wide range of grades, including Urals, ESPO and Varandey — was offered at a premium of $2 to $8 per barrel compared to the London benchmark Date Brent," writes Bloomberg.

At the same time, Reuters reports that on Monday Urals oil was offered in Russian ports at a price of about $ 76 dollars per barrel, whereas two weeks ago it was $ 45.

"The price for a shipment of Urals oil shipped from the Baltic port of Primorsk jumped this week to about $ 54 million from about $ 35 million in February," the agency estimated.

Sources also told Reuters that the cost of shipping raw materials has also increased, and the freight of tankers from Baltic ports has more than doubled — from $ 8 million to $ 22-23 million.

U.S. Ambassador to India Sergio Gore wrote on Twitter that India was "an excellent partner in maintaining stable oil prices around the world" and that purchases of Russian oil were part of this effort.

Earlier, the United States gave India a one-month exemption from sanctions for the additional purchase of Russian oil, and Donald Trump announced the possibility of lifting some of the sanctions to curb the rise in world oil prices due to the Iranian crisis. In Brussels, in turn, they demanded that the United States not abandon the price ceiling for Russian oil for third countries. Previously, it was $ 60 per barrel, but the European Union and some of the G7 countries agreed on a reduction and the limit is at a little over $ 41. Washington has not joined this initiative.

At the same time, Russian President Vladimir Putin urged not to experience euphoria from high prices.

"We need to understand that the current high commodity prices are certainly temporary. We understand this. This is an obvious thing. We should proceed from this," the president said at a meeting on the situation on the world oil and gas markets.

As EADaily reported, the Persian Gulf countries are reducing oil production and the market has begun to believe that the Iranian crisis is not for a week. World oil prices jumped for the first time since the summer of 2022 to almost $ 120 per barrel. Although then they dropped sharply to $ 92, as the Big Seven plans to open strategic reserves and send hundreds of millions of barrels to the market. A window of opportunity has opened for Russian oil exports. Russia will be able to improve oil and gas revenues, experts believe. The only question is how long the period of high prices will last.