As soon as India retreated, China made a big play, buying oil storage from Russia and Iran at throwaway prices, also got reduced.

News India Live, Digital Desk: A major upheaval is being seen in the global energy market. Due to trade agreements and strategic balance with America, India has drastically reduced the purchase of crude oil from Russia and Iran. Now China is taking direct advantage of this ‘step-back’ of India. Seizing this opportunity, China has started buying oil from Russia and Iran at huge discounts, due to which its coffers are getting huge profits. Why has India reduced its oil purchases? According to a recent report by Bloomberg, India’s oil purchases from Russia are expected to decline by about 40 percent in February as compared to January. American pressure and trade deal: Keeping in mind its business interests with America, India has started distancing itself from Russia and Iran. Payment More sanctions: International sanctions and payment related complications also forced India to change its strategy. China’s ‘Profit Booking’: Russian oil available at $12 per barrel. After India’s withdrawal, China is the biggest buyer left for Russia and Iran. Taking advantage of this compulsion, China has made huge bargains. Huge Discount: Russia is now selling oil to China at the rate of just $12 per barrel. Compared to last month, there has been a huge decline in prices by up to $10 per barrel. Iranian oil game: Iranian ‘light crude’ is also available to China at around $11. Storage is full, there is no space left to store it! China is currently quenching its thirst with “discounted oil”. The situation is such that China has purchased oil equal to its entire refining capacity. Record import: China’s oil export from Russia has increased by 2 million barrels per day in the first 18 days of February, which is 20 percent more than January and 50 percent more than December. Where is it keeping the oil: China has now filled all the storage facilities (teapots and other depots) built inside and outside its country. Analysts say that now it is running out of space to store new oil. Why trust Russia more than Iran? The interesting thing is that China has now considered it safer to buy oil from Russia than from Iran. Fear of attack on Iran: China fears that America can attack Iran’s oil facilities at any time, which can disrupt the supply. Less risk with Russia: Despite the Ukraine war, oil supply from Russia is currently for China. More stable and safe. This is the reason why China has reduced its purchases from Iran by 12 percent compared to last year and has focused entirely on Russian oil. This strategy of China is not only providing it cheap fuel amid the global energy crisis, but is also strengthening its economy.