India: Iraq played smart in the global oil market
economy breaking India Iraqi oil
Shafaq News/ The Indian newspaper "Times of India" reported on Monday that Iraq played smartly in the race to sell oil to the Indian markets with the outbreak of the Russian war on Ukraine.
The Indian newspaper clarified in a story translated by Shafak News Agency, that India is among the largest importers of crude oil in the world, and it relies on energy sources imported from abroad to meet 85% of its needs. She pointed out that
India harnessed its excessive dependence on imported oil, to its advantage, even when oil prices rose globally due to the Ukrainian war, as Saudi Arabia lost to Russia in responding to the market for selling oil to India.
According to a study prepared by the US "Bloomberg" agency, Russia overtook Saudi Arabia to become the second largest oil exporter to India during the month of June.
The report explained that these changes occurred when Russia resorted to selling its oil at a reduced price, noting that
Iraq, for its part, "played smartly by reducing the price of its oil sold to India." And he indicated that
when Russia invaded Ukraine last February, India's purchases of Russian oil were very limited, while Iraq and Saudi Arabia controlled the Indian oil purchases market, while a series of sanctions were imposed on Russia because of the war. The report stated that
during the month of last March, Russian oil was flowing largely into Indian reservoirs, but Russian oil was sold at a higher cost estimated at about 13 dollars a barrel, compared to the supplies provided by Saudi Arabia from barrels of oil to the Indian market. He added that
oil prices rose in the meantime, specifically during the months of April and May, and the price of a barrel of Russian oil allocated to India became cheaper than Saudi oil during the month of April, while Iraq was still selling the most expensive oil to India, and for this reason The Russian stock in Indian tanks continued to increase due to the reduced price. He explained that
while Saudi Arabia did not renegotiate the pricing of oil for India, Iraq lowered its prices slightly during the months of May and June, which enabled Iraq to remain the largest exporter of oil to India, while Saudi Arabia lost its position to Russia.. The Indian report pointed out that
Russian barrels of oil became cheaper than Saudi barrels from April to June, and the difference gap grew to nearly $19 a barrel in May before recording a decline to $13 in June.
It was about $9 a barrel more expensive than Russian crude in May, but it became cheaper later.