India may take advantage of a Russian offer to sell its crude oil cheaply and bear the cost of insurance and transportation. The country could import as much as 2 million tons, or about 15 million barrels of crude oil, from Russia that is facing a financial crunch due to Western sanctions. The development comes after reports that Indian Oil Corporation) bought 3 million barrels of Russian crude for May delivery.
Why it’s important: The surging price of crude oil after war began in eastern Europe was worrying for India as higher retail prices will lead to increased inflation that could come in the way of a incipient economic recovery. Crude prices have eased since then and the Russian deal might make the Indian oil basket even cheaper, leading to a lower quantum of increase in pump prices.
