India's Crude Oil Imports Rise, Sustains Russian Purchases Amidst Discounts
India's crude oil imports increased in November to 21.06 million metric tons, the highest since March, reflecting a significant rise year-on-year. Despite Western sanctions, India continues to import Russian oil, with Reliance Industries receiving cargoes from Rosneft. Russian oil imports are projected to exceed 1 million barrels per day in December, driven by discounted offers from non-sanctioned entities. This trend highlights India's sustained demand and strategic procurement choices amidst global energy dynamics.
India, the world's third-largest oil importer and consumer, saw its crude oil imports climb to 21.06 million metric tons in November, a 0.2% month-on-month increase and an 11.1% rise year-on-year. This marks the highest import level since March, indicating robust oil demand. Concurrently, crude oil product imports declined by 8.6% annually to 4.25 million tons, while product exports also fell 1.7% to 5.25 million tons.A significant aspect of India's import strategy is its continued procurement of Russian crude. Reliance Industries Ltd. has reportedly received oil cargoes from Rosneft, leveraging a one-month concession from Washington despite sanctions on the Russian producer. Trade and refining sources anticipate India's Russian oil imports to surpass 1 million barrels per day in December. This defies earlier expectations of a sharp decline, as Indian refiners have resumed purchases from non-sanctioned entities offering substantial discounts. This strategic shift underscores India's focus on securing advantageous deals in the global market. Furthermore, Chennai Petroleum Corp plans a major expansion, aiming to boost its Manali refinery's capacity from 210,000 to 280,000 barrels per day and venture into fuel retailing, signaling future growth in its energy sector.
