Why is ONGC Videsh selling all the Russian oil to HPCL and BPCL?
Answer
Answer
ONGC Videsh, the international arm of ONGC Ltd, has recently sold one cargo of Russian Sokol oil to HPCL and BPCL. This is more because there has been no international demand for Russian oil amidst sanctions. In fact, the recent oil sale tender failed to elicit any interest from other global buyers as people were unwilling to rub the US the wrong way.
India has been aggressively buying oil from Russia at a steep discount of 20% to 25%, despite sustained pressure from the Western nations due to sanctions on Russia. The last 2 tenders by ONGC for Russian oil did not get any response from buyers. ONGC Videsh will look to selling more cargos to Indian refiners amidst weak global demand.