In September, Chinese refiners are reducing the purchase of crude oil from Saudi Arabia and Russians at cheap prices are turning to “Urals” oil. According to London Energy Aspects Limited report, Russia oil is available at a more competitive price than the Middle East oil. However, Russia is about 17 percent of China’s total oil imports and according to experts, it is not considered appropriate to take more than 20 percent from a one source.
According to Bloomberg data, Saudi Aramco will send 43 million barrels of oil to China in September, lower than the previous month’s 51 million barrels.
America imposes 25% tariff on India
US President Donald Trump has decided to impose 25% additional tariffs on India, as India continues to import energy from Russia. This tariff will be applicable from August 28. Beijing has opposed the US pressure, calling it “legitimate” to buy oil from Russia. But despite this, the US did not take similar steps against China, while India has imposed strict sanctions. India’s Foreign Ministry condemned the move, saying that countries that have criticized India are doing business from Russia themselves, so it is unfair to isolate India.
India’s oil dependence on Russia increased
India’s oil dependence from Russia was 1.7% in FY20, which has increased to 35.1% in FY25, making Russia India’s largest oil supplier. Former RBI Governor Raghuram Rajan says that stopping the purchase of oil from Russia will not be a big shock financially, but it will be difficult politically because it will be assumed that India has come under American pressure.
China’s 90 -day discount in America’s tariff
The White House has extended a 90 -day tariff agreement to China, which has currently postponed the plan to increase the tariff to 145%. This shows that the US is taking some diplomatic flexibility with China, while taking strict steps against India.