BPCL Expects Russian Crude Purchases to Fall in November
Higher freight costs are eroding the price edge of Russian barrels, while Middle Eastern grades are becoming more commercially viable, a BPCL executive said.
- On Monday, Bharat Petroleum Corporation Ltd announced Russian crude purchases will decline in November as higher freight costs erode price advantages, with director Vetsa Ramakrishna Gupta noting Middle Eastern grades are now more commercially viable.
- Russian crude premiums collapsed to about $1–$2 a barrel for December cargoes from $12–$13 in October, Gupta said, making Russian cargoes "significantly reduced" for November because of higher freight costs.
- Saudi Arabia and the UAE increased their share in BPCL's crude imports to 19% and about 17% respectively in July-September, with suppliers using ship-to-ship transfers to bypass the Strait of Hormuz amid regional disruptions.
- BPCL expects West Asian oil volumes to improve further in coming months while competition from China intensifies for Russian crude, prompting the refiner to progressively restore sourcing from the Middle East.
- Refinery runs may moderate in the third and fourth quarters as BPCL undertakes a planned 30-day shutdown of units at its Mumbai refinery and a 30-to-40-day maintenance turnaround at Kochi.
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India’s BPCL to Cut Russian Oil Imports Due to Higher Prices
Bharat Petroleum Corporation Limited (BPCL), one of the biggest Indian state-owned refiners, will reduce its purchases of crude oil from Russia in November as high freight costs and premiums for Russia’s crude undermine the attractiveness of Moscow’s oil compared to Middle Eastern offers. BPCL will buy lower volumes of Russian crude in November as the Middle East grades are more commercially attractive for the company now, BPCL’s head of financ…
The increase in the freight cost of tankers makes Russian oil extremely expensive for Indian NPPs, which are already looking for alternative supplies in the Persian Gulf.
India's BPCL expects Russian crude purchases to fall in November
India's Bharat Petroleum Corp Ltd expects Russian crude purchases to fall in November as higher freight costs and unattractive offers make Middle Eastern grades more economical, a company executive said on Monday.
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