Indian Refiners Resume Non-Sanctioned Russian Oil Purchases at Discount
Indian state-run refiners, IOC and BPCL, have resumed limited purchases of discounted Russian crude for January delivery, securing cargoes at about $5 per barrel below Brent from non-sanctioned sellers. India's total Russian oil intake is expected to stay modest, under 600,000 barrels a day, as refiners remain cautious amid tighter US sanctions and heightened bank scrutiny.
Indian state-run refiners, including Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL), have reportedly resumed limited acquisitions of discounted Russian crude oil for upcoming January deliveries. These purchases were made from non-sanctioned entities, with cargoes secured at approximately $5 per barrel below the international Brent benchmark. This move highlights India's strategy to capitalize on widening discounts available for Russian crude, reflecting its pragmatic approach to energy procurement.However, despite the appealing price difference, India's overall intake of Russian oil is anticipated to remain conservative, specifically under 600,000 barrels a day. This cautious stance is primarily attributed to heightened vigilance among refiners concerning stricter US sanctions and increased scrutiny from banks involved in transactions. The geopolitical landscape surrounding Russian oil exports continues to be complex, with Western nations imposing various restrictions. Indian refiners are navigating this environment by ensuring their purchases are from non-sanctioned sellers, thereby attempting to mitigate potential risks of secondary sanctions or financial complications. The limited volume indicates a balancing act between securing cost-effective energy supplies and adhering to international financial and political sensitivities. This measured re-engagement suggests that while India is keen on securing advantageous deals, it is also highly attuned to the evolving regulatory and geopolitical challenges associated with Russian energy trade.
