Analyst Smith: It will be difficult for India to refuse to buy Russian oil because of its price

MOSCOW, January 11 – RIA Novosti. Ronald Smith, senior analyst at BCS Mir Investments, told the RIA that India is particularly sensitive to commodity prices, so it would be difficult to refuse to buy Russian oil despite the news that it is ready to limit these purchases to above $60 per barrel. novosti

“India is a very price sensitive consumer of commodities. If the price of the Urals rises above $60, it will still be $20-40 cheaper than Brent and it will be very difficult for India to stop buying Russian oil,” Smith said. . .

The day before, foreign media, citing unnamed representatives of the Ministry of Oil and Industry of India, wrote that the country may restrict its oil purchases from Russia if its price exceeds $ 60 per barrel or if the EU decides to impose general secondary sanctions on countries that buy oil from Russia. black gold”. According to sources, the current price of Russian oil going to India is $53-56 a barrel.

Russia remains the largest oil exporter to India for the third month in a row, shipping 1.17 million barrels per day of crude oil in December, according to analytical firm Vortexa. India is the world’s third largest oil importer; It imports almost 80% of its crude oil needs.

On December 5, Western oil sanctions came into effect: the European Union stopped accepting Russian oil transported by sea, and the G7 countries, Australia and the EU imposed a price cap for sea transport of $ 60 per barrel – oil is more expensive to transport and transport, and insurance is prohibited. As of February 5, the maximum price for petroleum products is not yet known, but similar measures are expected to be taken.

In response, Russia is prohibited from supplying oil to foreign entities from 1 February if it directly or indirectly ensures the use of the price cap mechanism in contracts. For petroleum products, the date will be determined by the government of the Russian Federation.