Another illustration of the effects Washington’s policies are having on the world oil market is that India will accept oil tankers that have been sanctioned by the US for their contributions to the movement of cargoes for Russia.
On Friday, the US announced the most violent punishment but on Russia’s energy deal, just weeks before Joe Biden is to be replaced by Donald Trump as president. With over 160 tankers, key traders, insurers, and the Office of Foreign Assets Control listed, oil prices have since risen above$ 80 per barrel.
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Previous US sanctions on ships had a significant impact, leaving it to be seen what consumers ‘ reactions will be to Friday’s steps.
A top Indian official stated to investigators that sanctioned vessels cannot transfer. Ships chartered before January 10 are exempt from that, provided they unload by March 12.
The standard, who asked not to be identified because of the awareness of the problem, even said:
- When a wind-down time expires in two months, the effects of sanctions may be felt.
- Fuel supply is not an problem. OPEC has 3 million barrels a day of extra power while non-OPEC providers like US, Canada, Brazil, Guyana can quickly put containers
- Cost is an topic but the march above$ 80 don’t last long
- The oil refineries of India are negotiating phrase supply agreements with Middle Eastern suppliers. Depending on the market, they perhaps get more containers
- India is looking into what happens to the interest held by express corporations in the sanctioned Vostok oil project.
- If provide becomes less plentiful, Indian producers could reduce the savings they used to purchase Russian oil.
- Russia has not yet made its place known regarding the punishment.
- Russia may find a way to transport its crude oil to India.
- American banks may require certificates of origin to prevent crude from being supplied by regulated suppliers.
