Friendship discount: India blackmails Russia with oil price

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China and India are currently almost the only buyers of Russian crude oil. However, the PRC still has the first signs of "self-sanctions". That is, state-owned companies from China resell their quotas for domestic oil to private companies to purchase raw materials anonymously. But in India they decided to act differently, although no less harshly. According to Bloomberg, New Delhi is ready to continue to openly purchase black gold from Russia, only subject to a huge discount - 30% - for Brent, that is, somewhere around $70 per barrel at a market price of $105.

This approach, which replaced the role of a monopolist of supplies with a monopolist on the part of the client, created unfavorable conditions for the Russian Federation to stay on the market. After all, such requirements, of course, can hardly be called even a friendly discount. In addition, the Indian side at the talks also requires Russian suppliers to bear the cost of oil delivery, and this is a very considerable financial cost, because, as you know, there are no direct pipelines from the Russian Federation to India and their imminent appearance is not expected.



In general, the expected situation has developed against the backdrop of anti-Russian energy sanctions. The Indian side puts tough conditions, so bargaining takes the form of blackmail. But the choice of suppliers is not very large. The extractive industry needs a market to keep production going, and at the same time it needs revenue to keep the industry profitable and investing in development during a long period without Western of technologies.

Therefore, it is highly likely that Russian companies will have to agree to the conditions put forward by the counterparty. In addition, the Asian market is super promising and it is necessary to win it at a low cost. However, the cost of oil production at the end of last year was approximately $30-40 per barrel. In other words, even taking into account the “friendly discount”, the profit for domestic suppliers remains. However, it is also necessary to remember about the second condition of Indian clients - payment for delivery, and this already specifically reduces the profitability of potential contracts.

At present, due to global changes in global logistics and the redistribution of an important product around the world, the cost of chartering tankers has expectedly increased. So the question of meeting the needs of Indian customers is between the strategic need to enter the Asian market and economic expediency.
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  1. -5
    6 May 2022 10: 20
    So the question of meeting the needs of Indian customers is between the strategic need to enter the Asian market and economic feasibility.

    - Well, it's so understandable!
    What did the author want to say? - Or did he just go out to "get confused" in people?
  2. 0
    6 May 2022 10: 32
    India once joked with the price for a moment. Rafael now requires 2,8 times more for service, and there is nothing to say about the cost.
  3. 0
    6 May 2022 10: 52
    This is capitalism. What did you want? There is no crime that the capitalist will not commit...
    Maybe it's better to come to grips with your country? Maybe let oil for the needs of your country?

    Burning oil is the same as heating the stove with banknotes.“ - Dmitry Ivanovich Mendeleev.
  4. -3
    6 May 2022 11: 34
    What a friendship, haha.

    Look at the share of the Russian Federation in their RE trade and the share, for example, of the USA ....
    What else can we offer them, except raw!!!! oil??? We can, of course, but...
  5. +3
    6 May 2022 12: 29
    The dumbest news I've ever seen. Everyone was too lazy to check her campaign, but this is a fake.

    The news began with a false statement that no one except China and India buys Russian oil.
    Oil is bought from us (in descending order): China, the Netherlands, Germany, Belarus, the Republic of Korea, Poland, Italy, the USA, Finland, Slovakia, etc. As you can see from the list, India does not even take the TOP-10)))

    New Delhi is ready to continue to openly purchase black gold from Russia, only on condition of a huge discount - 30% - for Brent, that is, somewhere around $70 per barrel at a market price of $105.

    - This line is great! And it is beautiful because we do not sell Brent, but sell Urals. These are two different oils and Urals has always been sold cheaper. Urals is currently trading at $76,99!!! And India is selling Russian oil for $70. It is not difficult to calculate the discount - it is $6,99 per barrel. This is the data as of May 6, 2022.
    Link to Urals oil prices: https://ru.investing.com/commodities/crude-oil-urals-spot-futures
  6. 0
    6 May 2022 14: 27
    Quote: ALLxANDr
    The dumbest news I've ever seen. Everyone was too lazy to check her campaign, but this is a fake.

    The news began with a false statement that no one except China and India buys Russian oil.
    Oil is bought from us (in descending order): China, the Netherlands, Germany, Belarus, the Republic of Korea, Poland, Italy, the USA, Finland, Slovakia, etc. As you can see from the list, India does not even take the TOP-10)))

    New Delhi is ready to continue to openly purchase black gold from Russia, only on condition of a huge discount - 30% - for Brent, that is, somewhere around $70 per barrel at a market price of $105.

    - This line is great! And it is beautiful because we do not sell Brent, but sell Urals. These are two different oils and Urals has always been sold cheaper. Urals is currently trading at $76,99!!! And India is selling Russian oil for $70. It is not difficult to calculate the discount - it is $6,99 per barrel. This is the data as of May 6, 2022.
    Link to Urals oil prices: https://ru.investing.com/commodities/crude-oil-urals-spot-futures

    And you yourself then check the news for fake. Poland has not been buying oil from us for a long time. Proofs - https://kapital-rus.ru/articles/article/polsha_otkazalas_ot_postavok_rossiiskoi_nefti/

    In my opinion, India should be sent on a long journey .... saving is good, but not at the expense of the people of the Russian Federation.
    1. 0
      6 May 2022 21: 28
      The link "https://kapital-rus.ru/articles/article/polsha_otkazalas_ot_postavok_rossiiskoi_nefti/" is about nothing. There is data, unfortunately reluctant to dig in more depth, for April 2021.

      Exports from Russia to Poland for the period April, 2021 - April, 2021 amounted to $1.07 billion.
      The main exports were “Mineral Products” (55%), “Hidden Section” (18%).
      In the structure of exports by country, China ranks first (12%), followed by the Netherlands (8%). Poland is partner number 10 for Russia with a share of 3%.

      https://ru-stat.com/date-M202105-202105/RU/export/PL.

      India, and others could and should be sent, but unfortunately:

      1. We have practically no oil storage facilities;
      2. it is impossible to stop production for technological reasons;
      3. there is nowhere to put oil, since we have no processing.
      You can get a lot of things from oil, but we sell oil and buy refined products.



      From natural gas (methane), respectively.

      1. +1
        6 May 2022 21: 36
        From oil get

        9. Naphtha;
        10. Propylene glycol;
        11. Plastic containers;
        12. Cases for household appliances;
        13. Furniture details;
        14. Toys;
        15. CDs and DVDs (more than 40 billion liters of oil per year. Each disc and its box contains up to 1 liter of oil);
        16. Baby nipples;
        17. Diapers;
        18. Faux fur;
        19. Materials for stuffing pillows and upholstered furniture;
        20. Polyurethane;
        21. Plastic container;
        22. Polyethylene;
        23. Food film;
        24. Plastic bottles;
        25. Fabrics (In the production of 40% of all textiles, oil is actively used in the composition of materials. This is especially true for functional wrinkle-resistant clothing.)
        26. Polyester (Swimwear, underwear, bags, boots, lycra tights, thermal underwear, sportswear are made from synthetic fibers ...);
        27. Nylon;
        28. Polyamide;
        29. Materials for covering many armchairs and sofas;
        30. Eye shadow;
        31. Pencils for lips and eyes;
        32. Cosmetic varnishes
        33. Shampoos;
        34. Spirits;
        35. Medicines - originally people used oil for medicinal purposes;
        36. Aspirin (acetylsalicylic acid);
        37. Antiseptics;
        38. Antibiotics;
        39. Anti-tuberculosis drugs;
        40. Medicines for gastrointestinal diseases;
        41. Calming agents;
        42. Rubber;
        43. Synthetic rubbers;
        44. Rubber shock absorbers, mats, pads and the like;
        45. Bitumen is a key ingredient in asphalt;
        46. ​​Oils;
        47. Polypropylene;
        48. Solvents, paints and varnishes;
        49. Lubricating oil;
        50. Electrical insulating oil;
        51. Engine oil;
        52. Hydraulic and electrical insulating oils;
        53. Coolant;
        54. Fertilizers;
        55. Wax;
        56. Tar (it is used in the construction of roads);
        57. Coke (finds application in metallurgy);
        58. Sulfur (goes for the production of sulfuric acid);
        59. Vaseline;
        60. Paraffin. The material from which candles and colored pencils are made, as well as much more, is also obtained from the distillation of oil;
        61. Paint. Many paints contain products of hydrocarbon processing. However, if women thought that we were talking only about paint and varnish products for construction, then no - hair dye is also made from oil;
        62. Detergents. Oil was also widely used in the manufacture of various household chemicals. However, some types of it are quite toxic due to the fact that there is a need to make them very caustic for complex tasks. It is necessary to be careful with such means, since a large number of them can leave no chance not only for plaque and dirt, but also for a person if they accidentally enter the body;
        63. Chewing gum. After all of the above, it will no longer come as a shock that the polyethylene and paraffin resins that give the chewing gum, beloved by many, its physical qualities, are also extracted from oil;
        64. Solar panels. Alternative energy sources such as solar panels are designed to replace non-renewable energy sources. But ironically, they also require petroleum products to make them. The fact is that solar cells that convert solar energy into electrical energy are applied to panels made from petroleum resins;
        65. Synthetic fertilizers;
        66. Pesticides;
        67. Pesticides;
        68. Food flavors;
        69. Food thickeners;
        70. Emulsifiers;
        71. Food coloring;

        Our import https://ru-stat.com/date-M202105-202105/RU/import/world
  7. 0
    6 May 2022 21: 00
    You have to be philosophical about it. For example: Try to do it with your own hands, so that oil would cost 300 bucks. And then agree (so be it) to make a 10% discount for India. And if they put bananas for free and buy lards so for -12teen weapons, then all XNUMX%.
    1. 0
      2 June 2022 18: 02
      For technological reasons, oil cannot be stopped. After all, only at the beginning, when it is drilled with a drill, it can gush, and then it is squeezed out of the reservoirs with a saline solution. \u30d 50-3% of the sale of oil) you have to sell to get at least some profit. And besides, "Statements of officials about the cost of oil in the Russian Federation at 8-2016 dollars per barrel - Deputy Minister of Energy of Russia Anton Inyutsyn, 10 15-2016 dollars per barrel - Russian Energy Minister Alexander Novak, 2 20 dollars on average in the Russian Federation and 2016 dollars for hard-to-recover reserves and offshore projects - Deputy Minister of Energy Kirill Molodtsov, March 3 Less than XNUMX dollars per barrel at Rosneft fields, according to the head of " Rosneft" Igor Sechin." - https://pronpz.ru/neft/sebestoimost.html. But the profit is now instantaneous, but the equipment, technologies we have are imported and they impress, buy them at least in a direct, at least in a crooked way ...