India’s buy of Russian oil rose to 2 million barrels per day (BPD) in August. It is because refiners proceed to prioritize financial issues of their procurement selections.
In keeping with world real-time information and analytics supplier Kpler, 38% of the estimated 5.2 million barrels per day imported within the first half of August got here from Russia.
Imports from Russia at 2 million bpd elevated from 1.6 million bpd in July. The rise in Russia’s present was the casualty of purchases from Iraq, which fell to 730,000 bpd in August, with Saudi Arabia falling from 700,000 bpd to 526,000 bpd final month.
In keeping with Kpler, the US was the fifth largest provider at 264,000 bpd.
Sumit Ritolia, lead retriever analyst at KPLER, stated: “Nevertheless, the soundness we see proper now’s primarily a results of timing. The August freight was locked up earlier than coverage modifications in June and early July.” What seems in immediately’s information displays selections made a number of weeks in the past, he stated, including the precise changes to flows on account of tariffs, cost points and delivery friction will solely start to be seen from late September to October arrivals.
He identified that there was no authorities directive to scale back Russia’s quantity. “So from a coverage perspective, it is enterprise as ordinary.”
Irvinder Singh Sunny, chairman of India’s largest oil firm, India, stated the federal government has not given instructions to decelerate purchases from Moscow within the aftermath of President Donald Trump’s determination to slap an extra 25% tariff on imports from India.
“We’re not informed to purchase, to not purchase,” he stated. “Now we have not made any additional effort to extend or scale back the share of Russian crude oil.” Russian oil accounts for round 22% of the crude oil processed by the IOC from April to June, and volumes are anticipated to stay the identical within the close to future.
Individually, Bharat Petroleum Company Ltd (BPCL) Director (Finance) Vetsa Ramakrishna Gupta stated imports from Russia had fallen final month from 34% of general imports within the June quarter.
“Until there are new sanctions on Russian oil, our procurement technique will probably be 30-35% of Russian crude oil for the remainder of the 12 months,” he stated.
India, the world’s third largest oil client and importer, rapidly changed market-valued oil, which discounted Russian crude oil after Western sanctions in Moscow after the invasion of Ukraine in February 2022.
Russian oil, which accounted for lower than 0.2% of pre-war India’s imports, presently accounts for 35-40% of the nation’s crude consumption. Nevertheless, the reductions shrunk from $40 per barrel final month to simply $1.5.
This month’s low cost has risen to greater than $2 per barrel.
Ritrea stated Indian refiners have been watching the scenario intently. “There’s rising curiosity in sourcing extra barrels from the US, West Africa and Latin America, not essentially as a result of they’re away from Russia’s provide, however due to hedging towards attainable disruptions. That is a shift from maximizing margins to vitality safety and logistics danger administration.”
Nevertheless, he unexpectedly added that purchasing extra cargo from elsewhere all over the world doesn’t imply that Indian refiners will exchange Russian barrels. “Crude oil purchases are steady and sophisticated course of pushed by refinery composition, grade compatibility and economic system. Indian refiners must supply 60-65% of the crude oil from non-Russian suppliers, and their combine won’t change out of the blue. It is too early.” Sahney stated India continued to purchase with financial issues in thoughts, as there’s by no means any import of crude crude oil from Russia.
“Until sanctions are imposed, such purchases will proceed,” he stated. “There aren’t any directions (from the federal government) to extend or lower purchases. We’re doing enterprise as ordinary.”
The IOC chairperson stated, “We’re not informed to purchase extra, we’re not informed to purchase much less from us or different locations. Financial issues decide our actions,” stated the refiner, who’s being requested to extend purchases from the US to type out Trump.
Printed – August 15, 2025 02:29 PM IS
