• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 19 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 5 days How Far Have We Really Gotten With Alternative Energy
  • 9 hours e-truck insanity
  • 4 days Bad news for e-cars keeps coming
  • 5 days China deletes leaked stats showing plunging birth rate for 2023
  • 7 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Why India Is Suddenly Buying Less Russian Crude

  • In September, Indian refiners are not expected to buy any ESPO crude from Russia because of the higher shipping rates.
  • African and Middle East crude becomes more attractive as shipping rates on long voyages have jumped.
  • This shift in India buying comes just a few months after Russia overtook Saudi Arabia to become India's second-largest supplier of crude oil.
India oil storage

India, which has been buying large volumes of Russian crude since the Russian invasion of Ukraine to take advantage of cheap oil, is set to slow purchases of Russian oil this month and look to more African and Middle Eastern supply as shipping rates on longer voyages have jumped.

Before the war in Ukraine, India was a small marginal buyer of Russian oil. After Western buyers started shunning crude from Russia, India became a top destination for Russian oil exports alongside China.

Indian refiners haven't expressed hesitation to deal with Russia—their primary incentive to buy has been the much cheaper Russian oil than international benchmarks and similar grades from the Middle East and Africa.

However, with a recent surge in freight rates, Russian oil doesn't look so cheap. Moreover, the travel time from Russia's Far East, where the ESPO grade is loading for exports, is a month to India, compared to a week necessary for a Middle Eastern cargo to reach India.

In September, Indian refiners are not expected to buy any ESPO crude from Russia because of the higher shipping rates, industry sources told Reuters on Thursday.  

"On net back basis after factoring in the freight, the landed cost of ESPO is turning out to be $5-$7 a barrel costlier in comparison to similar grades from other countries such as UAE's Murban," an Indian industry source with knowledge of the deals and prices told Reuters.

Refiners in India prefer to purchase crude from Africa and the Middle East instead of Russia's ESPO, the source added.

This shift in India buying comes just a few months after Russia overtook Saudi Arabia to become India's second-largest supplier of crude oil earlier this year.

As a result of no ESPO loading for India this month, more volumes of that grade would likely go to China, which is much closer to Russia's Far Eastern oil export ports.

By Charles Kennedy for Oilprice.com 

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News