1 week ago
Indian Refiners Cut Russian Oil Purchases, Seek Supplies Elsewhere
Indian oil companies have been buying less crude oil from Russia.
Attacks by Ukraine have disrupted some Russian refineries and ports.
This has made it harder for Russia to send as much oil to other countries.
India received more than half of its imported oil from Russia last month.
Now, Indian companies are looking for oil from West Africa, the Americas and the Persian Gulf.
India’s biggest refiner, Indian Oil Corporation, has searched for supplies from faraway countries.
Other Indian refiners have also bought oil that is not from Russia.
China is competing with India for the smaller supply of discounted Russian oil.
Indian refiners are reducing Russian crude purchases as Ukrainian attacks disrupt Russia’s refineries and Black Sea ports.
Russian crude imports to India are expected to fall to about 2 million barrels per day this month, from roughly 2.8 million in July.
Indian Oil Corporation and other refiners are seeking crude from West Africa, the Americas and Persian Gulf producers.
Russia’s seaborne crude shipments fell to about 3.5 million barrels per day over the past four weeks, from more than 4 million in July.
Indian refiners are facing tighter Russian supplies and stronger competition from China for discounted barrels.
- Who
- Indian refiners, including Indian Oil Corporation, Hindustan Petroleum Corporation and Mangalore Refinery and Petrochemicals, are involved; Russia and China are also key parties.
- What
- Indian refiners are reducing Russian crude purchases and seeking alternative supplies.
- Where
- The supply disruption involves Russia’s refineries and Black Sea ports, while replacement crude is being sought from West Africa, the Americas and the Persian Gulf.
- When
- The shift is occurring this month; Russian seaborne shipments were measured over the past four weeks, compared with July.
- Why
- Ukrainian attacks, reduced Russian export availability, refinery maintenance and stronger Chinese competition have tightened access to Russian crude.
Key facts
- India’s Russian crude share
- Russian oil accounted for more than half of India’s imports last month.
- Expected imports
- Russian crude imports are expected to be around 2 million barrels per day this month, compared with roughly 2.8 million barrels per day in July.
- Russian seaborne shipments
- Shipments fell to about 3.5 million barrels per day over the past four weeks, from more than 4 million barrels per day in July.
- Alternative suppliers
- Indian refiners are seeking crude from West Africa, the Americas and Persian Gulf producers.
- Indian Oil Corporation activity
- Indian Oil Corporation sought supplies from the Americas and floated a tender primarily targeting Persian Gulf grades.
- Other buyers
- Hindustan Petroleum Corporation and Mangalore Refinery and Petrochemicals also made spot purchases of non-Russian crude.
- Additional pressure
- Crude shipments through the Strait of Hormuz remain constrained amid the ongoing US-Iran conflict.
Sources
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