India’s public sector refiners are in talks with their traditional West Asian suppliers of crude oil, particularly Iraq, to increase purchases amid a significant decline in discounts on Russian crude and likelihood of payment-related problems as Moscow’s flagship Urals crude trades above the G7 price cap of $60 per barrel, as per a senior government official.
The discount on Russian crude has contracted drastically in recent weeks and public sector refiners are not looking to buy from Russia if they are charged more than the G7 price cap, said the official, who did not wish to be identified. India has asked Iraq to consider better payment terms, like increasing the credit period to 90 days from the current 60, in lieu of higher offtake of Iraqi oil by Indian public sector refiners Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL).
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