The drive by OPEC and its allies to boost oil prices is lifting Russian crude along with it, prompting concerns from India’s banks that cargoes could breach the $60-a-barrel cap.
State Bank of India and Bank of Baroda informed refiners they will not handle payments for oil bought above the limit, said a refinery executive involved in seeking financing for the company’s Russian oil purchases, who asked not to be identified as he isn’t authorized to speak publicly. Banks in the South Asian nation are keeping a closer watch on prices at loading ports, before shipping and logistics costs are added, executives said.
Spokespeople at State Bank of India and Bank of Baroda didn’t immediately respond to requests for comment.
