Ever since donald trump became the President of America, his decisions one after the other have had a big impact on the world economy. For the last several months, he has dropped tariff bombs on many countries of the world. While America had given relief to india earlier, but now the situation is not the same as before. America is irritated with India's friendship with Russia. trump does not want india to buy oil from Russia. That is why trump has talked about imposing a 25 percent extra tariff as well as a fine on indian goods. But do you know how russia has such cheap oil, other countries are unable to compete with it.
If the report is to be believed, if india stops buying oil from russia, then the price of crude oil can increase up to 200 US dollars per barrel. Due to this, oil consumers around the world can suffer losses. Despite the ongoing war with Ukraine, Russian oil has never been banned.
Why is oil so cheap in Russia?
Russia is the second largest oil producing country in the world. oil is produced in russia, so oil is cheap there. Daily production in russia is about 9.5 million barrels of oil, which is 10% of the global demand. russia is also the world's largest oil exporter, which sends 4.5 million barrels of crude oil and 2.3 million barrels of refined oil to other countries every day. After the war with Ukraine, there was a fear that Russian oil could be out of the market. Due to this, Brent crude prices increased by $ 137 per barrel in march 2022.
Why other countries are unable to compete?
After the invasion of Ukraine, many Western countries stopped buying oil from Russia. Due to this, it became very difficult for russia to sell oil for itself. That is why russia was forced to sell oil at a lower rate to countries that are not included in the sanctions, such as India. russia has a low cost of oil production in some areas. Therefore, it can make a profit by selling oil even at a low cost. Due to sanctions from Western countries, russia has to look for new markets.
India is the third largest consumer in the world
When there was talk of Russian oil being out of the global market in the year 2022, the price of Brent crude had reached a high of $ 137 per barrel. According to sources, in the midst of this challenging environment, india is the third largest energy consumer in the world, which is 85% dependent on imports. russia provides oil to india at affordable prices. If in this situation india stops buying oil from russia, then there is every possibility of a rise in the price of crude oil.
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