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India's Refiners Seek Deeply Discounted Russian Crude
10 Dec
Summary
- Four of India's seven largest refiners are seeking Russian crude.
- Deep discounts drive Indian buyers to non-sanctioned Russian barrels.
- Reliance Industries avoids Russian crude despite large contracts.
Four of India's seven major oil refiners are now in the market for Russian crude, driven by significant price discounts that make non-sanctioned barrels attractive. Companies such as Indian Oil Corp. and Bharat Petroleum Corp. have recently procured approximately ten cargoes of Russian crude, including Urals. Hindustan Petroleum Corp. is also seeking supply for January delivery.
These four processors, which include Nayara Energy, represent over 60% of India's oil imports. Notably, Reliance Industries, formerly the largest purchaser of Russian crude in India, is now abstaining from these supplies, even sidestepping its substantial term contract with Rosneft. This avoidance is to mitigate potential violations of US or European sanctions.
India has been navigating a complex geopolitical balance, aiming to retain access to cost-effective Russian oil while maintaining its independent stance without alienating Western allies. Although imports of Russian crude are expected to decrease next year due to sanctions on entities like Rosneft and Lukoil, trade is anticipated to continue at a reduced volume.
