RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2022-05-04 12:20:00

RUSSIAN OIL FOR INDIA

RUSSIAN OIL FOR INDIA

PLATTS - 03 May 2022 - India emerged as the largest buyer of Russian Urals crude in April enticed by hefty discounts, as several of the grade's regular European customers have boycotted this oil following Russia's invasion of Ukraine.

Urals has been trading at record-lows in recent weeks, with some deals being done at discount of almost $40/b to the Platts Dated Brent crude oil benchmark.

Around a quarter of Russia's seaborne crude exports of the medium sour Urals in April is poised to travel to the South Asian country, according to trading sources and ship tracking data.

Russia exported 627,000 b/d of Urals crude to India in April compared to according to 274,000 b/d and zero in March and February respectively, according to data from commodity intelligence firm Kpler.

Seaborne Urals crude exports averaged 2.24 million b/d, its highest since May 2019, despite sanctions and boycotts by several of Europe's refiners, Kpler data showed.

Until Russia's invasion of Ukraine, India very rarely bought Russian oil. But with Russian crude trading at record-lows in recent week weeks, Indian refiners have been unable to resist buying cheap crude despite pressure from Western governments.

The medium sour grade Urals was assessed at its lowest level ever relative to Dated Brent at minus $39.40/b CIF Rotterdam on April 29, according to S&P Global Commodity Insights' Platts assessment.

The price of Russian Urals CIF Rotterdam averaged $69.89/b in April, according to Platts data. This compares with a monthly average of $104.40/b for United Kingdom's Forties, which is similar in quality to Urals.

Record lows

Russia has been desperate to find new customers after a dramatic decline in interest for its oil among Western consumers and it has found an opportunistic buyer in India, according to trading sources.

"Indian refiners are always desperate for a bargain. Russian crude is so cheap compared to other alternatives. They just could not resist Russian oil at these prices," said a Geneva-based crude trader.

Russian Urals crude exports to India were as less as 16,000 b/d and 32,000 b/d in 2020 and 2021 respectively, Kpler data showed.

These shipments are heading to several of Indian's refineries such as Reliance's two refineries in Jamnagar which have a capacity of 1.36 million b/d, Nayara Energy's 400,000 b/d site in Vadinar, Indian Oil Corporation's 300,000 b/d Panipat refinery, Hindustan Petroleum Corp Limited's 166,000 b/d Vizag plant and Bharat Petroleum Corp Limited's 310,000 b/d Kochi refinery.

Newfound appetite

Despite strengthening energy ties between the two countries, India has not been an active buyer of Russian crude oil, mainly due to economic and logistical issues. Urals crude, which is exported from the Baltic and Black Sea ports, involves long shipping voyages, and even Russian ESPO crude has not very convenient for Indian refiners to import. But at these prices, refiners have found it tough to ignore Russian crude.

India's newfound appetite for Russian oil has come under pressure from Western governments such as the US, UK and Germany. But the government has defended its purchases of Russian oil.

"The quantum of oil imports by India from Russia is a small fraction of what the rest of the world imports from Russia. Ultimately, we look at this from the perspective of energy security which not just India, but other countries are also pursuing," India's Foreign secretary Vinay Kwatra said at a press conference on May 2.

India's oil demand is also rebounding sharply as the country's economy is on an upward curve after it emerges from COVID-19.

Russian crude accounted for less than 3% of the around 4.3 million b/d crude that India imported in 2021, according to S&P Global Commodity Insights.

This comes as the EU is likely to propose an embargo on Russian oil in its next sanctions package against Moscow this week, according to Germany's economy minister, but may carve out exceptions for countries such as Hungary and Slovakia that continue to oppose a halt.

But Indian refiners' purchases of Russian crude could scale down with the tightening of sanctions by the EU and US from mid-May, which might hit logistics. The bulk of India's refiners bought this crude on a delivered basis, with sellers bearing costs related to insurance and shipping.

India, which has recently emerged as the world's third-largest crude oil importer, has been hugely reliant on crudes from the Middle East and West Africa, but it has been diversifying its suppliers over the past few years.

Russia is a significant supplier of oil to the world, exporting more than 7 million b/d of crude and petroleum products, or some 13% of total oil trade.

Europe is particularly dependent on Russian oil and was importing about 2.7 million b/d of crude and another 1.5 million b/d products, mostly diesel, before the invasion of Ukraine.

But self-sanctioning by some European refiners and independent traders has already slashed seaborne flows of Russia's Urals crude, heavy fuel oil, VGO, and naphtha into the region.

-----


Earlier:

RUSSIAN OIL FOR INDIA
2022, April, 22, 11:30:00
RUSSIA OIL EXPORTS UNCHANGED
Combined, Russia's seaborne crude and key oil products exports stood at 6.79 million b/d so far in April, down 640,000 b/d from 7.43 million b/d in February,
RUSSIAN OIL FOR INDIA
2022, April, 22, 11:25:00
RUSSIA'S OIL PRODUCTION 10.1 MBD
Oil production averaged 10.1 million barrels a day between April 1 and April 19, with the average production for the month forecast at 10 million barrels a day, down from the March average of 11.01 million barrels a day.
RUSSIAN OIL FOR INDIA
2022, April, 12, 13:05:00
RUSSIA UNDER SANCTIONS
Russia's invasion has driven up the price of the oil, gas and grain it exports, providing it with a substantial windfall to fund its "special military operation" - now entering a new phase as Moscow focuses on the eastern Donbas region after failing to break Ukraine's defence of the capital Kyiv.
RUSSIAN OIL FOR INDIA
2022, April, 8, 11:00:00
RUSSIA'S OIL PRODUCTION WILL DOWN
Novak is Russia's key negotiator in the OPEC+ group, which has resisted calls from consumers to increase production.
RUSSIAN OIL FOR INDIA
2022, April, 1, 11:20:00
INDIA NEED MORE OIL
We imported from Russia just 0.419 million mt in the April-December period of the current fiscal year 2021-22 (April-March). That is just 0.2% of the total requirement.
RUSSIAN OIL FOR INDIA
2022, March, 18, 11:30:00
INDIA'S OIL IMPORTS UP
Oil imports by Asia's third-largest economy rose 5% from January and were up 24% from a low base in February 2021, when a refinery at Bathinda in northern India was fully shut for maintenance, data showed.
RUSSIAN OIL FOR INDIA
2022, March, 15, 15:10:00
RUSSIA NEED INDIAN INVESTMENT
"Russia's oil and petroleum product exports to India have approached $1 billion, and there are clear opportunities to increase this figure," said Russia's Deputy Prime Minister Alexander Novak, according to a statement shared by Russia's embassy in India late on Friday.
All Publications »
Tags: RUSSIA, OIL, INDIA
Chronicle:
RUSSIAN OIL FOR INDIA
2022, August, 9, 14:14:00
6TH ANNUAL LNG SUMMIT USA
The 6th Edition of Wisdom’s Much Acclaimed Annual LNG Summit Will Be Held Live in Houston - PREPARING THE INDUSTRY FOR THE RISE IN DEMAND FOR LNG
RUSSIAN OIL FOR INDIA
2022, August, 9, 14:13:00
2022 SAUDI PIPELINES INTERNATIONAL CONFERENCE & EXIBITIONS
Eventat Co (a Saudi local company) is hosting the first-ever “2022 Saudi Pipelines International Conference & Exhibitions” from 4-6 October, 2022 at the Dhahran Expo, Dammam (Eastern Province), Kingdom of Saudi Arabia. The three-day conference and exhibition are dedicated to bringing together over “50+ Regional/International speakers, 100+ Sponsors/Exhibitors, 1000+ Delegates and 3000+ Visitors” from around the globe who carry significant interest in enhancing the pipelines lifecycle for the current and future.
RUSSIAN OIL FOR INDIA
2022, August, 9, 14:12:00
9TH INTERNATIONAL LNG CONGRESS LNGCON 2023
9th International LNG Congress (LNGCON 2023) 6-7 March, 2023 Link to the Congress website: https://bit.ly/3tXVmr7
RUSSIAN OIL FOR INDIA
2022, August, 9, 14:10:00
RUSSIA FOR ITER FUSION
The 25th batch of Russian electrical equipment was successfully delivered to the construction site of the international thermonuclear experimental reactor Iter in France,
RUSSIAN OIL FOR INDIA
2022, August, 8, 12:50:00
OIL PRICE: BRENT ABOVE $94, WTI ABOVE $88
Brent were down 51 cents, or 0.5%, at $94.41 a barrel, WTI was at $88.58 a barrel, down 43 cents, or 0.5%.
RUSSIAN OIL FOR INDIA
2022, August, 8, 12:45:00
OPEC OIL PRICE: $100.01
The price of OPEC basket of thirteen crudes stood at $100.01 a barrel
RUSSIAN OIL FOR INDIA
2022, August, 8, 12:40:00
РАЗВИТИЕ ЭНЕРГЕТИКИ РОССИИ, ТУРЦИИ
Особое место в двустороннем взаимодействии занимает сфера энергетики: успешно функционируют газопроводы «Турецкий поток» и «Голубой поток», продолжается строительство первой турецкой АЭС «Аккую».
All Publications »