17 hrs ago
West Asian Oil Gains as Indian Imports Shift From Russia
India buys oil from many countries to meet its energy needs.
In September, it bought less oil from Russia than it did in August.
It bought more from several countries in the Middle East, including Iraq and Saudi Arabia.
Some Gulf oil was transferred between ships so that fewer buyer-owned tankers had to enter the risky Strait of Hormuz.
Russia’s oil supplies are under pressure, and Chinese buyers are competing for some of the available crude.
The article also says attacks on Russian energy infrastructure have affected supply and shipping risks.
US legislation could allow tariffs on major buyers of Russian oil.
Analysts say India may benefit from buying from a wider range of suppliers.
India’s Russian crude imports fell nearly 9% in September, to 1.9 million barrels per day from 2.1 million in August.
Imports rose from Iraq, Saudi Arabia, Kuwait and Qatar; combined imports from five listed West Asian suppliers reached 2 million barrels per day.
West Asian suppliers’ share of India’s oil imports rose to 36.7% in September, from 26% in August, but remained below February’s 56.3%.
Trade sources attributed increased Gulf exports partly to ship-to-ship transfers that move crude through the Strait of Hormuz before it is collected by tankers in safer waters.
Analysts cited stronger Chinese competition, tighter Russian crude availability and US sanctions uncertainty as pressures on Russian flows.
- Who
- Indian oil importers and refiners, with supply from Russia and West Asian countries.
- What
- India’s Russian oil imports declined while imports from several West Asian suppliers increased.
- Where
- India’s oil trade, including shipments through the Strait of Hormuz and Black Sea routes.
- When
- September; the article compares the figures with August and February.
- Why
- The article cites ship-to-ship transfers, competition from Chinese refiners, pressure on Russian supply and uncertainty around US sanctions.
Maintain diversified energy sourcing
Reduce reliance on Russian crude
India’s approach to Russian oil
Maintain diversified energy sourcing
India says its priority is meeting the energy needs of its 1.4 billion citizens through diversified sourcing.
Reduce reliance on Russian crude
Analysts say refiners should progressively reduce reliance on Russian crude and diversify further, amid US sanctions uncertainty and improved Middle Eastern availability.
Key facts
- Russian imports in September
- 1.9 million barrels per day, down almost 9% from August
- Russian imports in July
- 2.8 million barrels per day, a historic high
- Russian share in September
- More than 35% of India’s total oil imports
- Five West Asian suppliers in September
- Combined imports of about 2 million barrels per day
- West Asian suppliers’ combined share
- 36.7% in September, compared with 26% in August and 56.3% in February
- Iraq imports in September
- More than 551,000 barrels per day, up 238.2% from August
- Saudi Arabia imports in September
- Almost 543,000 barrels per day, up 56.2% from August
- US legislation cited
- The Lindsey O Graham Sanctioning Russia and Iran Act allows the US president to impose tariffs of up to 100% on major buyers of Russian oil.
Quotes
Nikhil Dubey
Lead analyst for refining at commodity market analytics firm Kpler
“Going forward, improved Middle Eastern barrels’ availability could see Indian refiners lean more towards them, particularly amid the geopolitical uncertainty surrounding the Graham Act.”
indianexpress.com
Sources
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