Indian oil refiners are increasing their purchases of oil from Angola, Brazil and the United Arab Emirates to reduce their dependence on Russian supplies.
This is reported by Reuters, citing sources.
India is reviewing its import policy, trying to reduce the share of Russian oil and increase supplies from the Middle East and OPEC countries, which could also help New Delhi negotiate with the US on reducing customs tariffs.
Indian Oil Corp (IOC) has purchased 7 million barrels of oil for March loading to replace Russian supplies. In particular, IOC purchased:
- 1 million barrels of Murban in Abu Dhabi at Shell;
- 2 million barrels of Upper Zakum from trader Mercuria;
- 1 million barrels of Hungo and 1 million barrels of Clove in Angola to Exxon;
- 2 million barrels of Buzios in Brazil from Petrobras under an additional contract.
Oil prices are not yet reported. Buyers and sellers typically do not comment on such deals due to confidentiality.
Indiaʼs imports of Russian oil fell to a two-year low in December, while the share of oil from OPEC countries rose to an 11-month high, according to trade data.
After the start of the full-scale war in Ukraine, India became the largest buyer of Russian oil at a discount, but after Western sanctions tightened in October, Indian refineries are reducing purchases from Russia.
- The US President Donald Trump signed sanctions against two of Russiaʼs largest energy companies “Lukoil” and “Rosneft” on October 23. The sanctions were supposed to take effect on November 23, but on November 15, the restrictions against “Lukoil” were postponed until December 13.
- In early December, the US postponed the introduction of sanctions against Russian oil giant “Lukoil” gas stations located outside the Russian Federation until April 29. “Lukoil” stake in Bulgaria was also exempted from sanctions until April 29. And Hungary was exempted from US sanctions on Russian oil and gas for a year.
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