India has made a lot of money ever since Russia invaded Ukraine. This is because they were purchasing Russian crude at a $30/barrel discount to the Brent Sea crude spot price. I calculated the amount of money they were making everyday off of this when it first started. It was millions/day.
India then turns that oil into Diesel or gasoline and then sells it to the countries that put the embargo on the Russian oil. They also transload some of that oil from one tanker to another. Maybe mix a little Nigerian oil with it and then sell it to a country that is embargoing Russian oil. Lastly, they change the BOL on the oil tanker and then sell it to any one who will buy it.
Oil is a fungible commodity. There is no chemical signature that identifies Russian oil from Nigerian Oil, North Dakota oil except the sulfur content. Sweet crude vs. sour crude.
When there is the opportunity to make millions of dollars/Euros/cash there is great motivation to cheat on the paper work.
Not positive on this but think that GCMS and maybe ICP analysis can match crude down to the specific oil field. Blending two oil fields is probably not too difficult to determine the mix. Just takes a few more seconds or minutes of computer time.
—”They also transload some of that oil from one tanker to another. “
Possibly but not probable, a much better return from selling the refined product that helps Indian employment, lowering the local cost of energy and reducing Indian inflation.
That in turn generates political favor for the owners of the world’s largest refinery; yes in India, IIRC Modi’s home state.
And all of this activity of below-market crude adds downward pressure to the world market. Causing further problems for Russian energy sales.
‘They lose money on every barrel sold, but make it on the volume!’
Not exactly, but valving off an active well is a bad idea.
Crude from different sources tends to have different chemical properties.
” No two crude oil types are identical and there are crucial differences in crude oil quality. The results of crude oil assay testing provide extensive detailed hydrocarbon analysis data for refiners, oil traders and producers. Assay data help refineries determine if a crude oil feedstock is compatible for a particular petroleum refinery or if the crude oil could cause yield, quality, production, environmental and other problems.”
https://en.wikipedia.org/wiki/Crude_oil_assay