India boosts Russian oil imports to record levels ahead of US waiver expiry – Bloomberg
Illustrative photo: India increased oil imports from Russia (Getty Images)
India has increased imports of Russian oil to record levels ahead of the expiration of a US waiver. If Washington does not extend the authorization after May 16, Indian refiners will be forced to look for more expensive alternatives, according to Bloomberg.
Record import volumes
According to the outlet, daily imports of Russian oil to India reached an unprecedented 2.3 million barrels in May. This is linked to the current US authorization, which allows purchases of oil that has already been loaded.
Forecasts indicate that the figure could average about 1.9 million barrels per day by the end of the month.
Consequences of the war with Iran
The oil market has faced major disruptions due to the war with Iran, which led to the blocking of flows from the Persian Gulf through the Strait of Hormuz.
India, the world’s third-largest oil importer, has been forced to adapt to these conditions. The US granted a special authorization for purchases of Russian oil in order to curb price growth, but it expires on May 16.
If the authorization is not extended, Indian companies will be forced to seek alternative and more expensive supply sources.
Against this backdrop, India’s largest state-owned refiners, Indian Oil Corporation and Bharat Petroleum, have already started buying oil from West Africa and the US, and are also considering short-term agreements to diversify supplies.
What is known about the situation
As previously reported, India is currently at the center of energy instability caused by the war in the Persian Gulf region and the blocking of key maritime routes. Due to energy shortages, Indian Prime Minister Narendra Modi has already urged citizens to save fuel as much as possible and limit consumption of goods requiring significant foreign currency spending.
At the same time, official New Delhi is trying to balance domestic market needs with the US sanctions policy. Earlier, attempts were recorded to supply Russian LNG from sanctioned plants.
It later became known that India had begun refusing purchases of Russian liquefied natural gas. According to analysts, the reason is that the movement of gas tankers is much easier to track via satellites than oil tankers, creating high risks of secondary sanctions for Indian companies.
