Russian oil & Opec effect: Outcome of buying Urals oil above

The risks to Indo-Russian oil trade escalate when Urals crude starts trading above the cap imposed by the European Union

Over the past year, cheap Russian crude has proved to be a Sanjeevini, a wonder herb, for Indian refiners, which, on one hand, were hemmed in by directions to keep pump prices flat, and, on the other, faced surging crude levels. Russia is now the biggest supplier of crude to India, accounting for around 37 per cent of total crude shipments in March, and sold at sizable discounts compared to the rates India pays its traditional West Asian suppliers.

But in a surprise move last week, the Organisation of Petroleum Exporting Countries (Opec) put pressure on this cheap source of