In August, imports from the Russian Federation continued their three-month slump against the backdrop of increased attractiveness of suppliers from the Middle East.
The Indian government has ordered refineries to comply with the price cap on Russian oil set by the G7. This was reported by Bloomberg on September 1.
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It noted that interest in cheap Russian oil may end as New Delhi’s traditional suppliers in the Middle East come back with attractive terms.
“Our dependence on Russian oil will decrease significantly. The cost-effectiveness of the Persian Gulf countries is now more attractive,” said Indian Oil and Natural Gas Minister Hardeep Singh Puri.
Russia’s oil consumption rose sharply after Russia’s invasion of Ukraine, displacing Saudi Arabia and Iraq from the top spots.
However, higher prices have reduced the discount on Russian oil and limited the attractiveness of spot purchases, making other sources attractive again, some of which have contracts in the future.
In August, imports from Russia continued their three-month drop to 1.57 million barrels per day, the lowest since January, although Moscow remains New Delhi’s top supplier, according to Kpler data.
“I made it very clear. Now we are in the market and we will buy from anyone,” emphasized Puri.
As you know, India meets more than 86% of its oil needs through imports, which makes its economy very vulnerable to commodity prices.
It was earlier reported that by 2022, Russian oil imports to India will increase tenfold.
Recall that after the introduction of Western sanctions against the Russian Federation, Asian countries filled the niche left by European buyers. In November last year, the Indian authorities emphasized that they will not give up Russian oil, because its purchase is beneficial for the country.
Source: korrespondent
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