{"id":10851,"date":"2024-05-26T10:21:20","date_gmt":"2024-05-26T10:21:20","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=10851"},"modified":"2024-05-26T10:21:20","modified_gmt":"2024-05-26T10:21:20","slug":"india-urges-joint-negotiation-for-long-term-oil-supply-deal-with-russia","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/10851\/","title":{"rendered":"India Urges Joint Negotiation for Long-Term Oil Supply Deal with Russia"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0India has made a unique request to both its state-run oil refiners and private giant Reliance Industries Ltd. (RIL) to collaborate on negotiating a long-term supply agreement with Russia. The primary goal is to secure a stable crude oil supply and safeguard the nation\u2019s economy from price volatility.<\/p>\n

Since the invasion of Ukraine, India has been a significant purchaser of Russian crude oil. However, stricter enforcement of US sanctions has disrupted this trade, leading to higher oil prices for Indian refiners.<\/p>\n

According to sources cited in a Business Standard report, the government is urging its refiners to secure at least one-third of their contracted supply from Russia at a fixed discount to mitigate the impact of volatile prices on the nation\u2019s economy. This request for collaboration was informal, the sources added.<\/p>\n

The Indian government aims to bolster the bargaining power of its state-run oil processors, including Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp., during supply negotiations. Instead of competing individually, they are encouraged to collaborate.<\/p>\n

However, while the government\u2019s call for collaboration was informal, RIL remains cautious due to its position as a private refiner and competitor in the domestic fuel market. Sharing sensitive information with state oil refiners might pose challenges for RIL.<\/p>\n

State refiners have been aiming for an oil discount of more than $5 per barrel to Dated Brent. However, Moscow is offering crude at a discount of $3 and is reluctant to adjust further, according to insider sources. The discount for a specific Russian grade widened to over $30 after the war before gradually narrowing.<\/p>\n

Indian Oil Corp. previously had a long-term supply deal with Russia, which expired at the end of March and has not been renewed due to disagreements over volumes and pricing.<\/p>\n

Finding a balance between competition and cooperation is crucial. State-run refiners must collaborate effectively without compromising their individual interests. The ongoing India-Russia ties and geopolitical dynamics are significant factors shaping these negotiations, as India seeks stability in energy supplies while navigating global complexities.<\/p>\n

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