Two major Indian refiners just stopped buying Russian crude

  • Indian Oil Corporation and Bharat Petroleum Corporation Limited have suspended purchases of Russian crude oil.
  • The two big refiners are waiting for more clarity on the EU sanctions regime.
  • India, the world’s third largest crude oil importer, imported large volumes of Russian oil after the Russian invasion of Ukraine.


Two of India’s biggest refiners have stopped seeking supplies of Russian crude oil which are expected to arrive after Dec. 5, the day an EU embargo on Russian oil shipments comes into force, officials said. sources close to Indian companies’ sourcing plans. Bloomberg tuesday.

The two refiners are Indian Oil Corporation and Bharat Petroleum Corporation Limited (BPCL), according to the sources.

India, the world’s third largest crude oil importer, imported large volumes of Russian oil after the Russian invasion of Ukraine due to cheap supply with steep discounts on Russian grades compared to benchmarks.

Today, IndianOil and BPCL, two of India’s largest state-owned importers of Russian crude oil, are awaiting more clarity on the EU sanctions regime ahead of the December 5 deadline, including the possibility of secondary sanctions. against buyers of Russian crude.

The EU is expected to impose an embargo on Russian crude imports by sea in early December and ban all shipping services to all buyers unless the price of Russian oil is at or below a certain price cap, which remains to be determined. Russia has repeatedly said it will not export its oil to any country that has joined the G7 and the US-led price cap proposal.

As early as September, Indian purchases of Russian oil were already expected to slow as the Asian importer shifted to more supplies in Africa and the Middle East as shipping rates on longer voyages were increasing. With a recent surge in freight rates, Russian oil doesn’t look that cheap and Russian oil’s discount to benchmarks has narrowed.

India will also further diversify its oil imports to better prepare for future OPEC+ production cuts that are driving up oil prices and tightening supply, its Oil Minister Hardeep Singh Puri said last week.

By Charles Kennedy for Oilprice.com

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