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Sep 8, 2022
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Oil price: US begins to press India, demanding Russia to betray

Oil price: US begins to press India, demanding Russia to betray

Photo: AP/TASS

The new reality in the world of anti-Russian sanctions is increasingly reminiscent of the popular American TV series Tales from the Crypt, each episode of which was the story of a carefully thought out and committed crime. But the attackers never got what they wanted (award, inheritance, high position): the result of a carefully calibrated criminal plan always turned out to be downright creepy.

The same with anti-Russian sanctions. They, like a boomerang, return to those who launch them and hurt the Western economy. The energy industry is hitting hard right now.

To avoid a gas collapse, Europe severely cuts the allowable volumes of its use.

And frantically looking for ways to somehow curb rising oil prices. The US is also fussing and trying to find solid ground to get out of the swamp of the energy crisis. And it looks like the Undersecretary of the Treasury Wally Adeyemothought they almost succeeded.

“Last weekend, I was encouraged to see a message from India’s oil minister that they were considering joining,” he gleefully told Bloomberg TV. He went on to extol efforts to set cap prices for Russian oil exports, which he said would “further limit Moscow’s options in the future.” The high-ranking official also promised that even those countries that do not join it will benefit from this initiative, because “they will be in a better position” when they negotiate prices.

Adeyemo’s mood was lifted by the statement of the Minister of Oil and Gas of India Hardeep Singh Puriwho, during the Gastech 2022 exhibition in Italy, promised to evaluate the proposal of the G7 countries to impose a price cap on Russian oil. At the same time, he noted that the question remains which states will take part in the proposed price cap and what consequences this may have for the markets.

That’s just to consider the initiative can be infinitely long. Especially when the country against which it is directed is a time-tested ally and assistant. And although joining the anti-Russian sanctions could theoretically bring Indian companies higher profits, since now the price of oil for Indian buyers is still higher than the proposed ceiling of $60 per barrel, but getting into the list of countries unfriendly to Russia in India, let’s face it, is not easy. Here you need to think three times before making a decision.

Therefore, Indians are extremely cautious in their statements. Moreover, the Economic Times clarified that India would consider supporting the price cap proposal only if supplies from Venezuela and Iran were guaranteed. And these are not the most friendly countries to the United States. And they will certainly demand many concessions from Washington in exchange for their oil.

And even if the United States suddenly manages to come to an agreement with them, it is far from certain that they will be able to convince India to join the restriction. Russian political scientist Sergey Markov.

– As for India, I do not really believe that she will join any anti-Russian actions. She has not done this until now, this is a country friendly to Russia. In addition, the Indians are well aware that if the Russian leadership said: those who try to join the initiative to limit the price of Russian oil will not receive anything at all, then that is exactly what will happen. Most likely, if a market with a lower price suddenly appears, then the Indians will buy oil in both markets, but will not go into confrontation with Russia.

Yes, and the proposal to limit the price is somewhat strange. Just imagine, some countries took it and said: we demand that oil cost so much and not more. Otherwise, we won’t buy. But Russia refuses to sell them oil at the price they want. There is a stalemate. It is possible that for some time Russia will simply stop trading its “black gold”. And because of this, its prices around the world will jump sharply even higher than they are now. They can become simply astronomical.

The expert believes that, in this case, sane countries will get out of this situation by negotiating with Russia so that it sells oil to them at a discount. And, no matter how big this discount is, they will pay significantly higher than the $60 that Western countries are talking about now. Gas issues will also be addressed. At the same time, Russia will still be in the black, since now energy prices are abnormally inflated above the price at which they can actually be traded. Therefore, no matter what discounts Russia makes, it will continue to make a profit.

joint venture»: — What are the prospects that Iran or Venezuela will meet the US halfway? in issues of increasing oil supplies?

“Washington is ready to go to great lengths to achieve this goal. By the way, he is already making various concessions. But the situation is such that these two countries, especially Iran, will bargain to the last and beat out much more preferences than those that the States are ready to go for. But it is not certain that even if they manage to reach an agreement, India will make the decision that the West needs. Because guarantees of supplies from Venezuela and Iran are not enough to provide the necessary amount of oil on the market.

Today, the largest producers of this energy resource are three countries: Russia, Saudi Arabia, and the United States. And they are all contracted, the world economy now requires a lot of oil. It is simply impossible to do without the Russian one. Indians understand this. And I assume that they generally talk about how they can join something there, only so that the United States does not press them.

Significantly, Hardeep Singh Puri recalled that India is already facing criticism for boosting Russian oil supplies. And he explained that for him the well-being of the people of India is more important than some kind of “moral conflict”, because of which, apparently, the citizens of Europe are suffering.

“I said that Europeans buy more in one day than I do in a quarter. I would be surprised if this has not been the case so far. But yes, we will buy in Russia, we will buy anywhere,” the Indian minister said.

So you can be sincerely happy for the Indians: it seems that their rulers think first about the people who have entrusted power, and then about beauty, like “European values”.

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