—”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
Based on my recollection from the articles I read over a year ago was that their first choice was to distill and sell refined products. However, the amount of oil India was buying from Russia greatly exceeded their refining capacity. It also greatly exceeded the potential usage in India.
So, they were brokering the oil to other entities. Many of which were not allowed to buy Russian oil.
In my business there has been various duties and quotas over the years on the import of Canadian lumber into the USA. About twenty years ago we had a quota. So, the sawmills were limited how much lumber they could ship without paying a major duty. So, they would sell FOB mill in Canada to remanufacturing plants and some Canadian wholesalers who also had quota.
They could buy at a large discount FOB mill NO quota.
It was like a license to print money for some companies.
They would bring lumber into their yard flip the paper wrap over and make out the paper work. There were thousands of trucks of lumber shipped in this way.
We called them THE QUOTA CHEATERS.