The share of African crude oil in India’s complete crude imports in February dropped to its lowest stage in a minimum of 22 years as refiners took file quantity of discounted Russian oil and raised purchases from Middle Eastern producers beneath annual offers, delivery information obtained from sources present.
Refiners in India, which in the previous not often purchased Russian oil, due to excessive transport prices, have emerged as key oil shoppers for Russia, snapping up crude rejected by Western nations for the reason that invasion of Ukraine in February 2022.
Indian refiners principally purchase African oil by means of spot tenders. However, the nation’s thirst for African oil has been dampened by simpler availability of Russian oil offered at deep reductions.
More than a 3rd of India’s complete 4.94 million barrel per day (bpd) oil purchases final month got here from Russia. In the previous few months Moscow has changed Iraq as the highest oil provider to India, the world’s third-largest oil importer and client.
India acquired a file 1.72 million bpd of Russian oil final month, the info confirmed.
Oil from CIS nations – Russia, Kazakhstan and Azerbaijan – accounted for a file 38.3% of imports in February, whereas the share of African nations declined to three.6%, the lowest in data going again to 2001, the info confirmed.
“India’s intake of Russian low-sulphur grades like Sokol increased last month and that displaced purchases of sweet grades from west Africa,” mentioned Ehsan Ul Haq, analyst with Refinitiv.
Indian refiners are importing low sulphur oil reminiscent of Sokol and ESPO, offered at above the $60 a barrel value cap mounted by the western economies, in non-dollar currencies as their landed value continues to be cheaper than the rival grades from Africa.
European nations had lifted buy of center distillate-rich African oil as Europe’s diesel shares had been operating low, Haq mentioned.
Europe’s distillate shares had been beneath the 10-year common on the finish of January.
Also, Indian refiners appeared to have elevated oil purchases from producers in the Middle East beneath their yearly contracts to satisfy contractual obligations, he mentioned.
India’s imports of Iraqi oil in February rose by 5.3% from January to achieve an eight-month excessive of 1.03 million bpd, the info confirmed.
In the primary 11 months of this fiscal 12 months, from April to February, Iraq continued to be the biggest oil provider to India whereas Russia overtook Saudi Arabia to take the second spot, the info confirmed.
Higher purchases of Russian oil dragged down Indian crude imports from member nations of Organization of Petroleum Exporting Countries (OPEC) to the lowest stage in the 22 years of data.
