Russia dominated India’s oil imports in 2023-24 regardless of reducing reductions on oil and sanctions from G7 nations for its actions in Ukraine. In response to vitality cargo tracker Vortexa, Russian oil now accounts for 35% of India’s complete imports, up from 23% the earlier yr.
In the meantime, different main suppliers like Iraq, Saudi Arabia, UAE, and the US have seen a lower of their market share, states an ET report.Iraq’s share dropped to twenty%, Saudi Arabia to fifteen%, UAE to six%, and the US to three.5%.
When it comes to provide, Russia supplied 1.57 million barrels a day in FY24, in comparison with 1 million barrels a day within the earlier yr. Alternatively, Iraq’s provide decreased to 0.89 million barrels a day from 0.95 million barrels a day, and Saudi Arabia’s provide fell to 0.69 million barrels a day from 0.78 million barrels a day.
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Regardless of challenges in delivery, Indian refiners proceed to want Russian crude as a consequence of engaging reductions. “What has ensured Russia’s dominance within the Indian market is low cost. In any other case, why would Indian refiners purchase from Russia? It takes for much longer and prices rather more to ship oil from Russia to India,” an oil trade government was quoted as saying.
Reductions on Russian oil have decreased considerably for the reason that starting of the Ukraine battle. Initially, Russian crude (Urals) was offered at a reduction of $30 per barrel to the worldwide benchmark Brent, however now the low cost has narrowed to $2-3 per barrel.
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Indian state refiners looking for cost-effective Russian crude oil, whereas avoiding delivery and insurance coverage complexities, initially loved reductions averaging $12-13 per barrel. Inside a couple of months, this low cost diminished to $5-7. In latest months, it has additional decreased to $2-3 per barrel, however stays interesting to refiners striving for financial savings in crude oil procurement.
In the meantime, different main suppliers like Iraq, Saudi Arabia, UAE, and the US have seen a lower of their market share, states an ET report.Iraq’s share dropped to twenty%, Saudi Arabia to fifteen%, UAE to six%, and the US to three.5%.
When it comes to provide, Russia supplied 1.57 million barrels a day in FY24, in comparison with 1 million barrels a day within the earlier yr. Alternatively, Iraq’s provide decreased to 0.89 million barrels a day from 0.95 million barrels a day, and Saudi Arabia’s provide fell to 0.69 million barrels a day from 0.78 million barrels a day.
Additionally Learn | China pips India to develop into largest purchaser of sea-borne Russian crude at deeply discounted costs
Regardless of challenges in delivery, Indian refiners proceed to want Russian crude as a consequence of engaging reductions. “What has ensured Russia’s dominance within the Indian market is low cost. In any other case, why would Indian refiners purchase from Russia? It takes for much longer and prices rather more to ship oil from Russia to India,” an oil trade government was quoted as saying.
Reductions on Russian oil have decreased considerably for the reason that starting of the Ukraine battle. Initially, Russian crude (Urals) was offered at a reduction of $30 per barrel to the worldwide benchmark Brent, however now the low cost has narrowed to $2-3 per barrel.
Additionally Learn | Mini-Goldilocks second! Why Motilal Oswal thinks India is massive, daring and blazing
Indian state refiners looking for cost-effective Russian crude oil, whereas avoiding delivery and insurance coverage complexities, initially loved reductions averaging $12-13 per barrel. Inside a couple of months, this low cost diminished to $5-7. In latest months, it has additional decreased to $2-3 per barrel, however stays interesting to refiners striving for financial savings in crude oil procurement.
