China, India Benefit From Cheap Russian Oil While Prices Surge For West
INDIA-CHINA - Both India and China have drastically increased their imports of Russian oil at greatly discounted prices, with Indian purchases of Russian oil up by 400%, while countries buying from Russia benefit from discounted prices, the price for oil for the rest of the world is surging.
Last year India's exports from Russia stood at 34,000 barrels a day, or around 3% of its total oil imports. In April that number rose to 284,000 barrels a day and in May it rose to 740,000 barrels of oil a day, making Russia the second largest source for imported oil to India, with Iraq being the first.
China is also ramping up Russian oil imports, rising from 800,000 barrels per day in 2021 to over 1.1 million barrels per day in the month of May according to Vortexa Analytics.
While oil imports have been greatly discounted for countries buying from Russia, the rest of the world is seeing a surge in oil prices, with JPMorgan’s chief executive Jamie Dimon saying that the price of oil could rise to $175 a barrel later in the year.
Financial Times reported that a consultancy company called Energy Aspects says that we are facing "perhaps the most bullish oil market there ever has been" and that the "average" price per barrel will be about $140 a barrel in this year's third quarter.
The highest price that oil has ever reached was when it reached a peak of $166.90 per barrel during the 2008 economic recession. According to the contract for difference (CFD), Crud Oil has increased by 45.79 USD/BBL or about 61.15% since the beginning of 2022.
The global average for the price of a gallon of gas is around $5.13 per gallon, with some countries such as Hong Kong paying nearly $11 per gallon as of May and nearly $10 per gallon in Norway and Denmark.
Although the price for gasoline in the United States is usually much lower than European countries, the average price for a gallon of gas in the U.S. has risen to nearly 5 dollars, as opposed to around $3 per gallon in June, 2021 and $2 per gallon in June, 2020.