India Turns Back to Gulf Oil as Russian Crude Loses Its Price Edge
West Asian grades gained as Russian oil premiums narrowed and Indian refiners bought more spot cargoes, with Gulf oil making up 54% of imports.
- India increased Middle Eastern crude oil imports to 2.8 million bpd last month, returning to pre-war levels as Middle Eastern crude accounted for about 54% of total imports, up from 32% in August.
- Discounts on Russian crude narrowed significantly, with premiums against Brent crude falling to $1-$2 per barrel from more than $10 in recent months, eliminating the price advantage that had driven earlier Russian purchases.
- Russian imports fell 14% to approximately 1.8 million bpd as China competed for supply, while imports of Iraqi crude surged to approximately 830,000 bpd from 171,000 bpd, reflecting the sharp recovery in Middle Eastern supplies.
- Refiners snapped up spot cargoes as West Asian shipments through the Strait of Hormuz rebounded, easing supply constraints caused by the Iran war and providing Indian refiners more options on freight costs and delivery times.
- Indian refiners likely will continue preferring Middle Eastern oil going forward due to pricing advantages; "economics have always been driving Indian refiners' purchases," an Indian refining source said, as Russian oil costs now equal West Asian grades.
15 Articles
15 Articles
Ship tracking data, today Thursday, showed that India ' s oil imports from the Middle East returned last September to pre-war levels, while Indian refineries reduced their purchases of Russian oil in the middle of its intense competition with China.
India's imports of Middle East oil rose 32% in September to 2.8 million barrels per day, returning to pre-war levels on Iran, while its purchases of Russian crude declined as competition with China intensified.
The Economic Times
Times of IndiaIndia turns back to Gulf oil as Russian crude loses its price edge
Indias crude oil imports from the Middle East returned to pre-war levels in September, rising to 2.8 million barrels per day as shipments through the Strait of Hormuz recovered. Meanwhile, Russian oil imports fell 14% month-on-month as discounts narrowed, making Gulf crude more competitive for Indian refiners.
India's Middle East Oil Imports Jumped 32% in September
India saw its crude oil imports from the Middle East rebound in September to pre-war levels amid higher volumes exiting the Strait of Hormuz, while competition from China for Russian oil resulted in declining imports from Russia. India’s crude oil imports from the Middle East jumped to 2.8 million barrels per day (bpd) in September, up by 32% compared to August and the highest level since February, according to vessel-tracking data compiled by …
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