The fall in oil prices: the expert explains the reasons for the decline in India's purchases of oil from Russia

Western sanctions against Russia have turned the global energy market upside down. Now it is dominated by hype and panic, and economic Laws are completely unpredictable, and vice versa. It turned out that the price of oil is dictated by the seller, not the buyer (the market). Not everything is simple with sellers either: Saudi Arabia for the first time in a long time has reduced the cost of its grades of raw materials, while Russia is forced to reduce the price of its own, although for a different reason. As a result, the first week of September brought surprises and a drop in the cost of strategic raw materials, which dropped to $87 per barrel, and buyers around the world became more active.

According to Bloomberg, India has reduced its consumption of Russian oil, as Europe, on the contrary, has increased imports as much as it is technically possible. It currently imports more than one million barrels a day of Russian oil in an attempt to replenish stocks before a pan-European embargo on black gold imports from Russia comes into force.

Oil prices are on the record as oil prices tumble as demand fears grow, China grapples with new Covid outbreaks and Europe tries to take advantage of these lower prices to stock up on oil. In fact, there are obviously more reasons politicalrather than economic ones, which have lost their primacy in the process of influencing the market. At the same time, for the accelerated accumulation of reserves with the help of the Russian Federation, Western sanctions are not at all a problem, especially since no one pays close attention to the “moral aspect” of oil purchases from Russia, with an eye to the situation in Ukraine.

As OilPrice columnist Irina Slav writes, there are plenty of alternative sources of crude oil in Europe, but the price will be set by the seller, and the EU may soon be forced to pay more for this critical energy source. Due to the lower logistical leverage (and price), customers choose the product from Russia, which is why the goods go along the usual, long-term route, without getting to the distant Indian consumer, who, however, adheres to Russian suppliers for a rainy day.

The Financial Times even found an excuse for such a rush with Russian energy resources in the EU. The FT calls it a "necessary evil" with an eye to the approaching peak of the oil and gas crisis in the winter.
  • Photos used:
Dear reader, to leave comments on the publication, you must sign in.
  1. gorenina91 Offline gorenina91
    gorenina91 (Irina) 8 September 2022 08: 27
    The fall in oil prices: the expert explains the reasons for the decline in India's purchases of oil from Russia

    - Yes, what is there ... here ... talking about; what to discuss and interpret - everything is clear = like a day !!!
    - If, in a nutshell, then ... then ... then India has long since learned from China; and maybe she came up with her own mind!
    - And what has she (India) "reached" ??? - And India has come to the point that it also realized that it is necessary to wait for an "uncomfortable" "situation" for Russia - this is when Russia will be forced to sell its goods (not necessarily hydrocarbons) at low, bargain prices; and even in such cases, you can pay off with Russia "by barter" and suck in goods that it doesn't quite need - on account of payment (or you can also take loans from Russia - and with Russian loans - pay for Russian goods)! - This is the whole "open secret"!
    - This is how we live and "make friends" with our "friends" and "partners"! - Yes, already tired of this "theme" !!!
  2. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 8 September 2022 09: 08
    What's strange then?
    Capitalism in the yard.
    At first, speculators warmed their hands.
    Now all the storages, they write, b / m filled, demand has fallen.
    The Arabs (which prices dictate) and K, happily rubbing their hands, decided to lower prices, since demand has fallen.