Oil is dropping fast and WTI crude is currently trading at $103 per barrel levels. What caused this change? Is India buying more oil from Russia? The answer will be on the affirmative, India is buying more oil from Russia in 2022 as there are deep discounts offered by Russia. Commodity data from Kpler states that India imported more than 60 million barrels from Russia till now in 2022 compared to 12 million barrels in 2021.
To facilitate this purchase Indian banks will likely be joining hands with Russian banks who are not hit by sanctions to facilitate payment for purchases of oil from Russia in Indian Rupees. Setting up of payment mechanism is underway.
With China also buying higher volumes of oil from Russia global oil prices will be under stress and will drop further.
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