How India became Oil importer to Oil exporter in 3 months (Thread)
This is very interesting thread, read it carefully, I will explain in very simple language.
But first some basics :
1. Crude Oil
U cant make oil in factory, Its drilled from oil wells
1/10
This is very interesting thread, read it carefully, I will explain in very simple language.
But first some basics :
1. Crude Oil
U cant make oil in factory, Its drilled from oil wells
1/10
India doesn't have oil wells, Most of the Oil wells are at Middle east, USA, Mexico, Russia and Venezuela.
Middle east countries r close to us so India buy most of the oil from middle east.
The Oil that we get from Oil well is called - Crude Oil and its not usable.
Middle east countries r close to us so India buy most of the oil from middle east.
The Oil that we get from Oil well is called - Crude Oil and its not usable.
2. Refinery : The crude oil that we get from oil wells is processed in big Refineries and from there we get petrol diesel, paraffine, tar, bitumen and other petroleum products.
India doesn't have oil well but India have lot of Big refineries.
India doesn't have oil well but India have lot of Big refineries.
So the process is :
Crude Oil ------- Refinery (Processing of crude oil)----------- Processed Petroleum products (Petrol, Diesel, Bitumen, gasoline etc )
Crude Oil ------- Refinery (Processing of crude oil)----------- Processed Petroleum products (Petrol, Diesel, Bitumen, gasoline etc )
Before Russia - Ukraine war, India was buying most of crude oil from middle east but as war started USA and EU imposed sanctions on Russia and stopped buying Oil products from Russia.
Russia was in need of money so Russia offer crude oil to India and high discounted rate.
Russia was in need of money so Russia offer crude oil to India and high discounted rate.
USA asked India to not buy from Russia and threaten, if India buy from Russia there vud be serious repercussions.
If had there Congress govt been there, they vud have succumbed to USA pressure but there was Modi govt, they didn't give a damn to USA n started to buy from Russia
If had there Congress govt been there, they vud have succumbed to USA pressure but there was Modi govt, they didn't give a damn to USA n started to buy from Russia
Market rate were 130 USD/barrel, Russia offered us at 70 USD/barrel. India started to buy in bulk from Russia.
Now here is the interesting twist.
European countries doesn't have much refineries so they used to buy processed Petroleum from Russia n here India saw opportunity
Now here is the interesting twist.
European countries doesn't have much refineries so they used to buy processed Petroleum from Russia n here India saw opportunity
The market rate of crude oil was 130 USD and after processing through refinery it was much more and India was getting at USD 70 and India have lot of refineries so what India did.
India started to buy from Russia in bulk, processed crude oil in their refinery and started to sell Processed petroleum products to European countries.
In last months India has bought more than 40 million barrel crude oil from Russia
In last months India has bought more than 40 million barrel crude oil from Russia
Using it for local consumption also and exporting to European countries also.
This is how India become Oil importer to Oil exporter.
Those who trade in share market can tell you how shares of refineries are on fire these days.
Thread by @Infinity_Tarun
10/10
This is how India become Oil importer to Oil exporter.
Those who trade in share market can tell you how shares of refineries are on fire these days.
Thread by @Infinity_Tarun
10/10
@misminicute Yes
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