India’s Russian oil imports in November are expected to hit a five-month high, Kpler data showed
India’s oil imports from Russia in November are expected to hit a five-month high, according to preliminary data from Kpler, as refiners seek to secure barrels ahead of a US deadline to end transactions with sanctions-hit Russian oil producers.
India, the world’s third-largest oil importer, has become the biggest buyer of discounted Russian crude by sea after Russia was shunned by Western countries following their invasion of Ukraine in 2022.
Russian President Vladimir Putin is scheduled to visit the South Asian country next month, according to the Kremlin. His last trip there was in December 2021, months before ordering troops into Ukraine.
Britain, the European Union and the United States have tightened sanctions against Moscow over the war, with Washington’s latest action targeting the country’s biggest producers, Rosneft and Lukoil.
Russian oil buyers have until November 21 to halt transactions with the two companies.
RUSSIAN OIL IMPORTS INCREASED BEFORE FALLING IN DECEMBER
India’s purchases of Russian oil are expected to increase to 1.855 million barrels per day this month from 1.48 million barrels per day in October, according to preliminary data from ship tracking agency Kpler, contrary to many predictions of a drop after new sanctions on Rosneft and Lukoil. This figure would be the highest since July when the country imported 1.52 million barrels per day.
“Russian supplies are expected to be high in November as many refineries are trying to replenish stocks before the US sanctions deadline and also due to rules on the production of oil products for the EU market from non-Russian oil starting in 2026,” a trade source said.
However, imports were seen falling to their lowest in at least three years in December, as refiners turned to alternatives to avoid breaking Western sanctions, trade and refining sources said on condition of anonymity because they were not authorized to speak to the media.
Separately, the EU has set a January 21 deadline to refuse fuel from refineries handling Russian crude within 60 days of the bill of lading.
Bank scrutiny following the latest US sanctions has made India’s state refiners “extremely cautious”, one refinery source said, adding that India would likely get 600,000 to 650,000 barrels of Russian oil per day in December.
These include imports by Indian Oil Corp, Nayara Energy and shipments of some cargoes loaded in November for Reliance Industries, the sources added, citing early lifting plans from Indian companies.
MOST INDIAN OWNERS STOPPED RUSSIAN PURCHASES
Most Indian refining companies, such as Mangalore Refinery and Petrochemicals Ltd, Hindustan Petroleum Corp and HPCL-Mittal Energy Ltd, have stopped buying Russian oil.
Reliance Industries Ltd said it loaded a “predetermined” cargo of Russian oil on October 22, and would process any arrivals after November 20 at its refineries that produce fuel for the local market.
Source: Reuters
