In a significant shift in the global oil market, India's major refiners are ramping up their purchases of discounted Russian crude oil, capitalizing on substantial price reductions amid ongoing sanctions. The source reports that this trend highlights the evolving dynamics of India's energy imports and its response to geopolitical pressures.
Indian Refiners Acquire Unsanctioned Russian Crude
In recent weeks, four of India's largest refiners, including Indian Oil Corporation and Bharat Petroleum Corporation, have collectively acquired approximately 10 cargoes of unsanctioned Russian crude oil. These purchases come as refiners seek to benefit from deep price cuts offered by Russian suppliers, which have become increasingly attractive in the wake of Western sanctions.
Reliance Industries Takes a Cautious Approach
Notably, Reliance Industries has opted to refrain from participating in this market despite having a term contract with Rosneft, indicating a cautious approach amidst the shifting landscape. This decision underscores the complexities faced by Indian companies as they navigate the implications of international sanctions while attempting to secure energy supplies.
Broader Trends in India's Oil Import Strategy
The increased reliance on Russian crude by Indian refiners not only reflects the immediate economic benefits but also signals a broader trend in India's oil import strategy, as the country seeks to diversify its sources and mitigate risks associated with geopolitical tensions.
The International Energy Agency has recently addressed Qatar's concerns regarding LNG supply forecasts, highlighting a significant increase in global LNG trade. This development contrasts with India's recent shift towards discounted Russian crude oil purchases. For more details, see LNG forecasts.
