October Sees A Decline In India's Crude Oil Imports From Russia
India saw a notable decrease in its crude oil imports from Russia during the month of October, according to data from ship tracking agencies Kpler and Vortexa. The figures revealed a 12 per cent and 8 per cent decline in India's monthly intake of Russian oil, dropping to 1.57 million barrels per day (bpd) and 1.49 million bpd, respectively.
This dip comes as global oil prices have been on the rise due to voluntary production cuts by both Russia and Saudi Arabia, causing discounts on Russian oil to narrow. Indian refiners have been steadily cutting their imports of Russian oil in recent months, moving away from the peak of nearly two million bpd earlier this year. The shift reflects the evolving dynamics in the global oil market.
The decline in Russian oil imports appears to be a result of the changing landscape. In response to geopolitical tensions and a more competitive global oil market, Indian refiners are adjusting their strategies. The decline in October is also influenced by contractual agreements. Indian refiners purchase Russian oil on a delivered basis and the payment depends on the contract terms and the volatility in crude oil markets.
The reduction in Russian oil imports has coincided with a period of maintenance at Reliance Industries' refineries. With these refineries back in full operation, it is anticipated that November will see a resurgence in Russian oil imports. Viktor Katona, the lead crude analyst with Kpler, expects a rebound, noting that several cargoes postponed from October are scheduled for arrival in November.
To make up for the decreased Russian oil imports, Indian refiners have increased their intake of Saudi Arabian oil. It is part of their strategy to meet the annual commitments outlined in contracts with key Middle East producers such as Saudi Arabia. As India navigates the changing dynamics of the oil market, these adjustments reflect its ability to adapt to evolving circumstances and maintain its energy security.
(Inputs from Reuters)
