Russia is competing with Saudi Arabia by selling discounted oil as Putin's cheap crude flows to India

The price of oil from Saudi Arabia is lower than the price of oil from Russia.

Indian government data shows that Russian barrels were cheaper than Saudi Arabian barrels during the first half of the year. The spread narrowed to a $13 difference in June.

Russian crude sold at a premium in March.

Russia overtook Saudi Arabia to become India's second biggest crude supplier. In May, Iraq's oil was more expensive than Russia's, but it was cheaper in all other months.

One of the world's largest crude customers is India. The South Asian country has been facing high inflation and cheaper energy supplies can be an attractive option.

According to government data, India's crude import bill ballooned to over $50 billion in the second quarter, thanks to soaring global prices. In the same period in the previous year, oil prices were much lower.

India's imports from Russia have gone up by a factor of 10.

Gas prices in Europe are heading for a third week of gains. Concerns are mounting among EU member states over a full cut off of Russian supplies due to Russia's position as a top energy exporter.