Indian oil importers are insisting on a significant increase in discounts from Russian sellers due to the growing risks associated with continuing cooperation with Moscow. In particular, buyers are demanding a discount on Russian oil of around $10 per barrel compared to the benchmark Brent, which significantly exceeds the September level of $2-3.
This is reported by Finway
Supply Reductions and Response from Russian Suppliers
Some Russian suppliers are already refusing to provide such large discounts, considering them excessive. They are contemplating redirecting part of their export flows to China, which could lead to a reduction in oil supplies to India.
Forecasts suggest that in October, the volume of Russian oil shipments to India will decrease to approximately 1.4 million barrels per day. In comparison, this figure was 1.5 million barrels in August (-6.7%) and 1.6 million barrels in September (-12.5%). At the same time, most October shipments are likely to be sold at a price exceeding the price cap set by the EU and the UK at $47.6 per barrel, even with the $10 discount taken into account.
Impact of US Tariffs on the Indian Economy
Moreover, oil purchases from Russia could result in significant economic losses for India due to new American tariffs. The Chief Economic Advisor of India has estimated that these tariffs on Indian goods could reduce the country’s GDP by 0.5% in the current financial year.
“Indian oil importers are demanding that Russian sellers significantly increase discounts due to the serious rise in risks if cooperation with Moscow continues.”