US hooked on Russian oil?
The United States has said it is happy for India to continue buying as much Russian oil as it wants, including at prices above the price cap imposed by the G7 countries on Russian oil. America has said that even if India buys oil from Russia by paying a price above the price cap and it does not violate insurance companies, finance institutions and maritime services of western countries, then America does not mind. US Treasury Secretary Janet Yellen announced this on Friday. Janet Yellen has said that the price cap imposed by the G7 countries against Russia will still act to curb Russia’s revenue and reduce global oil prices. Talking to the news agency Reuters, Janet Yellen said these things during a conference organized to deepen Indo-US economic relations, in which she described India as a very important partner of America.
‘It will be difficult for Russia to sell oil’
Janet Yellen told Reuters that, however, it will not be easy for Russia to sell as much oil as it exports now, because after the price cap was imposed and the European Union banned Russia from buying Russian oil. It will not be possible to sell oil by giving significant discounts. He added that, once the European Union stops buying oil, it will be much more difficult for Russia to ship the same amount of oil it is doing now. Therefore, Russia will be desperately looking for new buyers of oil, but most buyers rely on Western services. India is now Russia’s largest oil customer apart from China. Let us tell you that the G7 countries will impose a price cap on Russian oil before the December 5 deadline.
‘Happy with the benefits India is getting’
US Treasury Secretary Janet Yellen said that the introduction of the price cap would further help India and China to reduce the price of Russian crude purchases. He said, “Russian oil is being sold at cheap prices, and we are happy that India has got this deal at a low price, which is fine.” Yellen told Reuters that, India and private Indian oil companies “can buy oil at any cost, as long as they don’t use these Western services (insurance and shipping), and they find other services. And any The method is fine.” He said the purpose of the price cap is to cut Russia’s oil revenue and prevent them from taking advantage of insurance, shipping companies in Western countries. He has expressed the possibility that after the price cap is imposed, the price of Russian oil may come down to a historic level of $ 63 to 64 per barrel.
be careful india
US This comment by Treasury Secretary Janet Yellen comes at a time when the Indian Foreign Minister and the Indian Petroleum Minister have clearly stated last week that India will continue to import crude oil from Russia as it benefits India. While there is no official response from India on his comments, Hindustan Times reports that other Indian officials have said that they are wary of the G7 price cap. An Indian government official said, “I don’t think we will follow the price cap mechanism and we have told countries about it and we believe they are comfortable with our decision.” The official said, Stable supply and prices are most important.
Will oil be supplied through tankers?
After the price cap of the G7 countries is activated, it will not be easy for any country to buy Russian oil, because after this they will not be able to get insurance to take Russian oil to the destination, nor will they be able to get ships from western countries. from which the oil is shipped. In view of this, work is being done on the tanker option like Russia. Rosneft, Russia’s largest oil exporter, is expanding its tanker charter trade so that its buyers do not have to look for tankers, insurance or other services as a price cap. However, the supply of oil from tankers will not be easy and for example, if India supplies oil from Russia by road through tankers, then the cost of that oil will increase so much that it will be very difficult to sell it in the market. So now it will be interesting to see how countries like India and China import Russian oil.