Due to Russia-Ukraine war many countries including India are now getting cheap crude oil from Russia. At the same time, there are reports that European countries plan to limit crude oil prices in Russia to crack down on Russia.
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Russia-Ukraine War (Russia-Ukraine War) Among these is the economy from Western sanctions (Russian Economy) Russia bought cheap crude oil to save (Crude Oil Price) Find a way to sell. While major crude oil consuming countries like India and China have benefited from this, the system may soon face a crisis. Because Western countries are thinking of reducing the price of crude oil from Russia. Now it remains to be seen if this will affect the petrol prices in India as well (Petrol Price in India) Will it grow?
According to a Mint report, European Union countries have pegged Russian crude oil prices at $65 to $70 per barrel. (cap on Russian crude oil prices) I decided to do it. This is much higher than the cost of producing crude oil in Russia. Imposing such a high price cap is likely to hurt Russia’s crude oil business, but Russia currently sells crude oil at huge discounts, so the move may not have much of an impact.
G7 countries can set prices
According to reports, the G7 countries may initially set the price of Russian crude oil at $65-70 per barrel. However, many EU countries believe that this price is the same as the average price before Russia invaded Ukraine. It is too much according to the current situation. A meeting of the ambassadors of the European Union was held in this regard on Wednesday.
What is the reason for the reduction in Russian oil prices?
What is the need for this capping on Russian oil? In fact, Western countries want to limit oil prices in the world and limit Russia’s income, so that its power in the Russia-Ukraine war is reduced. But Russia doesn’t seem too concerned about this as big consumer countries like India and China are already selling cheap oil to them.
However, after the price cap comes into effect, if companies buy crude oil at a lower price than this, they will not be offered shipping, insurance and financial support. Besides, many other opportunities will be lost and risks will increase in the crude oil business.
What will be the price of petrol in India?
India has been importing huge amounts of oil from Russia since the Ukraine war. (India imports crude oil from Russia) is buying. He is getting this oil at a huge discount. Due to this, oil trade continues between the two countries despite the strict attitude of the western countries. In such a scenario, the Russian oil price cap is expected to have an impact on India as well. However, if the price cap is between $65 and $70, it will be a similar situation for India as India is currently getting crude oil from Russia at around this price.
Recently, Petroleum and Gas Minister Hardeep Singh Puri, while replying to a question on price cap, said that there is no pressure on the Indian government regarding the price cap from the G-7 and the European Union.
English title: Consideration of curbs on West Russian crude will impact petrol prices in India