US using Indian refiners for record purchase of gasoline and diesel of Russian origin: report
06 Feb 2023
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Russian oil, which has been shunned by the west is being funneled to the United States through Indian refiners who have been snapping up discounted crude from the sanctioned nation, according to data from Kpler.
Washington has purchased around 89,000 barrels a day of gasoline and diesel this month from India, the highest quantum of fuel the US imported from the nation in nearly four years, Bloomberg reported, adding that the fuel is likely being made using banned Russian oil, of which India has become a top buyer amid western sanctions.
Russia has been supplying excess oil to friendly countries after western countries led by Nato imposed ban on Russian oil since that country declared war on Ukraine last February. Fuel-hungry countries like China and India have been tanking up Russian crude supplies in record quantities while Russia has been trying to plug the losses stemming from western sanctions.
India in particular began purchasing record amounts of crude oil from Russia after the European Union banned seaborne oil and slapped a $60 price cap on Russian crude, and New York has been purchasing growing quantities of Indian fuel as European exports have fallen off in the past few months. That could worsen once the EU bans Russian fuel imports on February 5, exacerbating the supply shortage in Europe and potentially ratcheting up New York's demand for Indian fuel.
Russia's energy revenue is still likely to suffer once the new fuel ban kicks as, according to experts, China and India are unlikely to ramp up their purchases of Russian fuel, since there's no need to. Tht could hurt Moscow and the west equally.
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