India finds alternative to Russian oil
Photo: India has found an alternative to Russian oil (Getty Images)
One of India's largest oil refiners, Bharat Petroleum Corp (BPCL), was looking for new sources of oil supplies due to the decline in exports from Russia. As a result, the company announced tenders for the purchase of more expensive oil grades from the Middle East, Bloomberg reports.
The main factor behind the decline in Russian supplies was the tightening of sanctions against Moscow's shadow fleet, which was used to circumvent international restrictions.
In addition, the article says, Russian refineries are under pressure to meet OPEC+ production quotas.
“We are short of three, four Russian cargoes for January-loading and February-delivery...We issued tenders and have secured alternate grades from Iraq, UAE and others, he said, referring to nations including the United Arab Emirates,” said BPCL CFO Vetsa Ramakrishna Gupta.
The price of oil from the Middle East currently exceeds the cost of Russian Urals by $2 per barrel, but there is no shortage on the world market.
Nevertheless, BPCL has no plans to expand the volume of long-term supply contracts, which are scheduled to be negotiated next month.
Russian oil in India
India became the largest buyer of Russian oil after Russia's full-scale invasion of Ukraine, increasing imports to record levels in 2023.
However, according to analyst firm Kpler, imports from Russia fell to 1.47 million barrels per day this month, the lowest level in over a year.
This situation has signaled traders who have begun to reassess the prospects for the oil market in 2025.
At the same time, the decline in Russian flows has forced India to diversify its sources of imports, which could change the global balance of oil supplies.
Earlier, Swati Rao, a research fellow at the Center for Europe and Eurasia, Manohar Parrikar Institute for Defense Studies and Analysis from India, explained why India buys Russian oil.
She also spoke about whether Russian propaganda is popular in India.
