India cuts Russian oil imports and seeks new suppliers - Bloomberg
Photo: India cuts purchases of Russian oil (Getty Images)
India is gradually reducing its purchases of Russian crude oil amid concerns about possible secondary sanctions from the United States and is increasingly seeking alternative markets, Bloomberg reported.
Vessel-tracking data and people familiar with the matter indicate that India’s oil imports are set to decline after shipments in December fell to a three-year low.
The administration of US President Donald Trump has for months pressured India over its purchases of Russian oil and ultimately imposed higher tariffs. Trade talks between the two sides have yet to produce an agreement, and the United States is now considering sanctions legislation that would penalize countries buying Russian hydrocarbons.
This pressure has pushed India’s refining sector — the world’s fourth-largest after the US, China, and Russia — to reduce its reliance on discounted Russian crude. As a result, tankers loaded with unsold barrels are increasingly idling at sea.
According to Bloomberg, at least 12 tankers filled with Russian crude oil are anchored off the coast of Oman, some of them having been there since mid-December.
Data from vessel-tracking firms Vortexa Ltd. and Kpler show that India imported about 1.3 million barrels per day of Russian crude in December. Purchases in January are expected to fall to lower levels.
Indian refineries are adjusting their procurement strategies, becoming more active in sourcing oil from the Middle East, West Africa, and Latin America.
Background
Earlier, Indian companies said they were ready to buy oil from Venezuela if the United States grants the necessary approval.
This comes as India sharply reduced imports of Russian oil following US sanctions against Lukoil and Rosneft.
It was also reported that tankers carrying Russian oil are piling up at sea, with the loss of the Indian market cited as one of the main reasons.
