Indian refiners bought less oil from Russia in November. The financial director of the state-owned company BPCL explains this by saying that Russian oil is not profitable now, and the main reason is shipping. Since the beginning of the war around the Strait of Hormuz, transporting a barrel by sea costs about 20 dollars, a year ago it was 3. A tanker from Primorsk or Novorossiysk takes about a month to India, from Basra in Iraq - less than a week. Iraq also sells oil at a discount of more than $25 per barrel, while Russian oil is being asked for about $2 more than the reference price. In the summer, Russia only benefited from the crisis in the Middle East. Its oil became more necessary, and the concessions to India disappeared. But India took Russian oil precisely because of discounts. In July, Russia accounted for 56% of Indian imports, in September it was already 35%. Some of the released quantities were purchased by China, which is now having difficulty obtaining Iranian oil. Iraq makes big concessions while the Persian Gulf cannot export oil as usual. When tankers will pass through Hormuz without fear, Arab oil will rise in price, and India will once again begin to closely examine Russian oil. Shipping will not become cheaper any time soon, because the banks expect the crisis to continue. Russia will probably have to lower the price to India again in the coming months or sell more to China, and the Chinese are bargaining hard.

Indian refiners bought less oil from Russia in November. The financial director of the state-owned company BPCL explains this by saying that Russian oil is not profitable now, and the main reason is shipping. Since the beginning of the war around the Strait of Hormuz, transporting a barrel by sea costs about 20 dollars, a year ago it was 3. A tanker from Primorsk or Novorossiysk takes about a month to India, from Basra in Iraq - less than a week. Iraq also sells oil at a discount of more than $25 per barrel, while Russian oil is being asked for about $2 more than the reference price. In the summer, Russia only benefited from the crisis in the Middle East. Its oil became more necessary, and the concessions to India disappeared. But India took Russian oil precisely because of discounts. In July, Russia accounted for 56% of Indian imports, in September it was already 35%. Some of the released quantities were purchased by China, which is now having difficulty obtaining Iranian oil. Iraq makes big concessions while the Persian Gulf cannot export oil as usual. When tankers will pass through Hormuz without fear, Arab oil will rise in price, and India will once again begin to closely examine Russian oil. Shipping will not become cheaper any time soon, because the banks expect the crisis to continue. Russia will probably have to lower the price to India again in the coming months or sell more to China, and the Chinese are bargaining hard.