> Ananth Ambani’s wedding was a success then, good to see something good come out of it for India.
In all seriousness though, kudos to the US. They realised the importance of Indian refineries i.e., RIL, in controlling global crude prices.It was to be expected I guess since the war in Ukraine is increasingly getting tense with attacks targeting Russian oil depots.
Was there any other angle I don’t know about?
Submission Statement:
Reliance Industries Ltd. has secured US approval to resume importing oil from Venezuela despite White House sanctions on the country, according to people familiar with the development.
India’s largest privately owned refiner plans to start purchasing Venezuelan crude soon, said the people, who asked not to be named as the information is not public. Reliance accounted for around 90% of India’s crude imports from Venezuela after the sanctions were lifted last year, according to data intelligence firm Kpler.
Washington temporarily removed restrictions on the South American nation’s gold and oil sectors last year, when President Nicolas Maduro and the opposition signed a deal to guarantee free and fair elections. The sanctions were then reinstated in April after Venezuela failed to honor the agreement, and oil companies have been applying for permits from the US Treasury Department to keep doing business there.
Presumably they’d prefer Reliance to import from Venezuela rather than Russia.
India would have been quite content to not buy any Russian oil, but for the fact that the West sanctions half the world’s oil and keeps the other half for itself. India was getting 16% of its oil from Iran (the oil more suitable for our refineries) and that trade was permitted after Iran signed the nuclear deal, ratified by the US and EU. After that the US walked out of the deal and India was warned not to buy Iranian oil (though China can). There were investments made in Venezuela’s oil industry by India and that was sanctioned too. A lot of Russian oil is refined and India (with the understanding of the EU) and exported to Europe, so Europe can maintain the facade of sanctions on Russia.
The fact that India has to seek permission from the US, before trading with any country (without UN sanctions) speaks for itself.
India currently imports oil at US$ 84.67 per barrel ( the 2024 average is higher). Indian imports from Russia are currently $4 per barrel lower. Different grades of Russian crude sell at a discount of between $ 4 & 12/ barrel to Brent crude, (the International benchmark) across Russia’s export markets. Russia’s average export price for the cheapest grade of oil (Ural) is $ 73/ barrel. The price cap is $ 60/barrel. Russia sells above the price cap and always has.
If Russia stops exporting, there will be a price increase of $ 30-40 barrel for all customers, which is something oil importers have simulated, hence the Indian FM’s remark.
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> Ananth Ambani’s wedding was a success then, good to see something good come out of it for India.
In all seriousness though, kudos to the US. They realised the importance of Indian refineries i.e., RIL, in controlling global crude prices.It was to be expected I guess since the war in Ukraine is increasingly getting tense with attacks targeting Russian oil depots.
Was there any other angle I don’t know about?
Submission Statement:
Reliance Industries Ltd. has secured US approval to resume importing oil from Venezuela despite White House sanctions on the country, according to people familiar with the development.
India’s largest privately owned refiner plans to start purchasing Venezuelan crude soon, said the people, who asked not to be named as the information is not public. Reliance accounted for around 90% of India’s crude imports from Venezuela after the sanctions were lifted last year, according to data intelligence firm Kpler.
Washington temporarily removed restrictions on the South American nation’s gold and oil sectors last year, when President Nicolas Maduro and the opposition signed a deal to guarantee free and fair elections. The sanctions were then reinstated in April after Venezuela failed to honor the agreement, and oil companies have been applying for permits from the US Treasury Department to keep doing business there.
Presumably they’d prefer Reliance to import from Venezuela rather than Russia.
India would have been quite content to not buy any Russian oil, but for the fact that the West sanctions half the world’s oil and keeps the other half for itself.
India was getting 16% of its oil from Iran (the oil more suitable for our refineries) and that trade was permitted after Iran signed the nuclear deal, ratified by the US and EU. After that the US walked out of the deal and India was warned not to buy Iranian oil (though China can).
There were investments made in Venezuela’s oil industry by India and that was sanctioned too.
A lot of Russian oil is refined and India (with the understanding of the EU) and exported to
Europe, so Europe can maintain the facade of sanctions on Russia.
The fact that India has to seek permission from the US, before trading with any country (without UN sanctions) speaks for itself.
India currently imports oil at US$ 84.67 per barrel ( the 2024 average is higher).
Indian imports from Russia are currently $4 per barrel lower.
Different grades of Russian crude sell at a discount of between $ 4 & 12/ barrel to Brent crude, (the International benchmark) across Russia’s export markets.
Russia’s average export price for the cheapest grade of oil (Ural) is $ 73/ barrel.
The price cap is $ 60/barrel.
Russia sells above the price cap and always has.
If Russia stops exporting, there will be a price increase of $ 30-40 barrel for all customers,
which is something oil importers have simulated, hence the Indian FM’s remark.