Yahoo Finance Fuel made from Russian oil is being funneled to New York by Indian refiners that are snapping up discounted crude
Fuel made from Russian crude is being funneled into New York by Indian oil refiners, according to data from Kpler.
New York is purchasing 89,000 barrels a day of gasoline and diesel from India, the most in about four years.
India has been one of Russia's top crude customers since its invasion of Ukraine last year.
Fuel made from Russian oil is being funneled into New York by to Indian refiners who have been snapping up discounted crude from the sanctioned nation.
According to data from Kpler, New York has purchased around 89,000 barrels a day of gasoline and diesel this month from from India. That's the most amount of fuel New York has purchased from the nation in nearly four years, Bloomberg reported, and that fuel is likely being made using banned Russian oil, of which India has become a top buyer amid western sanctions.
Russian oil has been shunned by the west since the country invaded Ukraine last February. But the energy superpower has been handing off its excess crude supplies to friendly countries–namely, China and India–in record amounts as it tries to plug the shortfalls stemming from US and European sanctions.
India in particular began purchasing record amounts of crude oil from Russia after the European Union banned seaborne oil and slapped a $60 price cap on Russian crude, and New York has been purchasing growing amounts of Indian fuel as European exports have fallen off in the past few months. That could worsen once the EU bans Russian fuel imports on February 5, exacerbating the supply shortage in Europe and potentially ratcheting up New York's demand for Indian fuel.
Russia's energy revenue is still likely to suffer once the new fuel ban kicks in though, experts say. China and India are unlikely to ramp up their purchases of Russian fuel, since there's no need to, Kpler's lead crude analyst previously told Insider. That could mean more headwinds for Moscow's economy as the war and western sanctions drag on.
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