India buys 60 million barrels of Russian oil
What's the story
India has purchased around 60 million barrels of Russian crude oil for next month's delivery. The move comes as global supply chains are strained due to the ongoing conflict in West Asia and disruptions in the Strait of Hormuz. The cargoes were bought at premiums between $5 and $15 per barrel above Brent.
Import boost
Recent purchases more than double February's imports
The volume of the recent purchase is similar to India's current month purchases but more than double February's imports, data intelligence firm Kpler said. The buying activity was made possible by a United States waiver that allowed delivery of Russian oil cargoes loaded before March 5. This waiver was later expanded to include shipments at sea before March 12 and extended to other countries facing supply disruptions.
Refinery shift
Indian refiners resume buying Russian crude
Bloomberg reported that Indian refiners such as Mangalore Refinery & Petrochemicals Ltd. (MRPL) and Hindustan Mittal Energy Ltd. have resumed buying Russian crude after staying away since December under US pressure. India had previously turned to Saudi Arabia and Iraq for supplies, but many of those cargoes were stuck in the Persian Gulf due to escalating hostilities, tightening supply availability and prompting a shift back to Russian barrels.
Supply diversification
India diversifies supply sources amid geopolitical tensions
People familiar with the matter told Bloomberg that authorities in New Delhi expect the US waiver to remain in place as long as difficulties to shipping via Hormuz continue. Despite increasing imports from Russia, India is also looking at other supply sources as geopolitical tensions continue to impact energy markets. India's imports of Venezuelan crude for April are expected to be around eight million barrels, the highest since October 2020.