The biggest state-owned refiner Indian Oil Corp. will likely reduce the amount of crude received under so-called term supply, while Bharat Petroleum Corp. and Hindustan Petroleum Corp. have decided against making firm commitments to take contracted oil next financial year, Bloomberg reported citing sources.
Russia plans to gradually ease the export cuts, Novak said in a statement. In April, it will reduce output by an extra 350,000 bpd, with exports cut by 121,000 bpd. In May, the extra output cut will be 400,000 bpd and exports cut by 71,000 bpd. In June, all the additional cuts will be from oil output, he added.
India's oil trade with Russia is being impacted by the tightening of US sanctions, prompting refiners to explore alternative supplies. While Russia remains the dominant supplier, Indian refiners are increasingly buying more from Saudi Arabia. Refiners are eager to increase purchases of Russian oil, but require US approval to do so.
Sources said Indian refiners are concerned the latest sanctions will create "challenges" in getting vessels for Russian oil and could drive up freight rates. That may narrow the discount for the oil, which is bought from traders and Russian companies on a delivered basis.
Crude oil imports in January rose 9.5% month-on-month to 21.39 million metric tons, and were up 5.7% from a year ago, according to Petroleum Planning and Analysis Cell (PPAC) data on Thursday.
India's state-run refiners are facing challenges as Russian oil becomes more expensive and less accessible due to higher freight rates and US sanctions. The attacks in the Red Sea by Houthi rebels have disrupted fuel trade, impacting Indian refiners and potentially eroding their competitive edge.
A European think-tank revealed that over one-third of India's oil product exports to the G7-led coalition countries came from Russian crude. While the coalition imposed price caps on crude but not on refined products, India's Jamnagar refinery, operated by Reliance Industries Ltd, played a significant role, exporting EUR 5.2 billion of oil products to the coalition. Despite restrictions on Russian crude, India imported EUR 3.04 billion of it to supply the sanctioned countries. Additionally, the Vadinar refinery, operated by Nayara Energy and partly owned by Rosneft, exported EUR 469 million of oil products to the coalition, with the USA being a major importer.
The figures show a 25% year-on-year increase in the value of crude oil from Russia, totaling USD 3.92 billion, with a 9% sequential rise observed.
India's External Affairs Minister S Jaishankar reaffirmed India's stance on buying Russian oil. During his visit to Germany for the Munich Security Conference, he stated that Europe should understand that India cannot have a view of Russia that is identical to the European one.
That led to more than 10 million barrels of unsold Sokol floating in seaborne storages in one of the biggest disruptions to Russian oil trade since the West imposed sanctions on Moscow over its military actions in Ukraine.
Indian state oil refiners, Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp, are in talks with Rosneft Oil Co PJSC for long-term supplies of Russian crude. The refiners aim to secure about 500,000 barrels per day of Russian crude supplies to diversify their sources.
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