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I think this is mistaken. We have seen no Western governments strongly criticize India for these oil purchases. The only criticisms have been from media outlet
by addicted 4y ago
I think this is mistaken.
We have seen no Western governments strongly criticize India for these oil purchases. The only criticisms have been from media outlets and mild criticisms when government officials are questioned by the media. But even those mild criticisms are usually caveated with something to the effect that this is not gonna affect relations with India.
The reason is simple. Western countries are privately thrilled with Indias arrangement. If India wasn’t buying Russian oil they would be buying it from the global market instead which would further push up oil prices and therefore inflation.
Even better, India is doing it at a massive discount ($35/barrel, I believe) which at current prices effectively translates to Russia selling oil to India at a loss.
Another interesting thing to note is that the $35/barrel discount India is getting, is functionally similar to the price cap idea that the European countries are trying to enact. In fact, I suspect it’s an even lower price than the cap they will settle on, and it remains to be seen if Europe can enact this price cap at all, something India has been doing successfully for the entirety of the war.
- fomine3 4y agoAgree for overall, but even if India bought oil for $35 discount, $88 (WTI) - $35 = $53, it seems to still profitable price. Also anyway there are fixed costs. So technically if everyone don't buy Russian oil, it's better for sanction but some people in developing country will die. https://timesofindia.indiatimes.com/business/international-business/u-s-says-russia-price-cap-should-take-risk-premium-out-of-oil-market/articleshow/94143124.cms https://timesofindia.indiatimes.com/business/international-b... This says $20 discount https://www.bbc.com/news/world-asia-india-60783874 https://www.bbc.com/news/world-asia-india-60783874
- addicted 4y ago$20 is also huge. Don’t forget that it’s also far more expensive for Russia to send oil to India. They don’t have oil pipelines to India. Their oil is being shipped to India, but their ports are all located on their Northern coast which means every round trip takes days and weeks longer than they used to when supplying the likes of Europe, which means they need more tankers to supply the same amount of oil to India than they would Europe.