Will India's Imports of Russian Oil Decrease?

A senior government official indicated today that India's crude oil imports from Russia are likely to decline due to reduced discounts and payment issues, prompting refineries to seek to increase imports from other sources. A source at one of the Indian refineries stated, "Discounts on Russian Urals crude have fallen to between $3 and $3.5 per barrel for loading in August and delivery in September, while Russian oil prices in spot markets have declined compared to before." The official noted, "Due to the reduction in discount volume, Russian oil is often priced above $60 per barrel, which is the cap imposed by Western countries." Russia had reduced the discount due to the OPEC+ alliance's decision to cut production. They questioned, "The shift to Russian oil was due to the discount. How can one pay if the price exceeds the $60 per barrel ceiling?" They added, "The problem isn't that companies are unwilling to buy. It's about their ability and willingness to do so. Your ability to purchase ends if you cannot make payments." The official confirmed that Iraq is prepared to increase its oil supplies to India with better discounts, noting that his country is in talks with Baghdad to extend the credit period to 90 days instead of 60. Indian refineries are already facing payment issues for Russian shipments due to the Western sanctions imposed on Moscow. Another source working in the refining sector stated, "The company I work for will not purchase Russian oil if the price exceeds $60 per barrel."