• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 7 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 5 days Energy Armageddon
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 14 hours "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 20 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 17 hours "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 21 hours The Federal Reserve and Money...Aspects which are not widely known
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 days Сryptocurrency predictions
  • 2 days Goldman Betting on Cryptocurrencies
  • 10 days Putin and Xi Bet on the Global South
Oil Prices Plunge As OPEC+ Considers Production Hike

Oil Prices Plunge As OPEC+ Considers Production Hike

OPEC’s de facto leader Saudi…

Oil Recovers After Volatile Start Of The Week

Oil Recovers After Volatile Start Of The Week

A WSJ report that argued…

Indian Refiners Look To Lock In Oil Deals Ahead Of Russian Crude Embargo

India, the world’s third-largest crude oil importer, is looking to lock in term purchase contracts with crude producers, expecting a redirection of trade flows and a tighter market when the EU embargo on imports of Russian crude enters into force in early December.   

Major state-held refiners in India, including the biggest refiner Indian Oil Corporation, and Bharat Petroleum, are looking to sign term deals with major producers, expecting more Middle Eastern crude to flow to Europe once the EU bans Russian imports, officials at the refiners tell Reuters. Contacts are also ongoing with the United States, according to the sources.

“Due to the Russian-Ukraine conflict, we expect a possibility of tight oil markets and a change in flows with most Middle Eastern crude going to meet need of European markets so we need to diversify our oil sources,” a source at one Indian state-owned refiner told Reuters.

India, which depends on imports for more than 80% of its crude oil consumption, is looking to diversify its sources via term deals amid uncertainties about what will happen to oil trade flows and oil prices in two months’ time.

Last week, top refiner Indian Oil Corporation signed term oil supply contracts with Brazil’s Petrobras and Colombia’s Ecopetrol. IndianOil is committed to strengthening India’s energy security, the company said as it announced the signing of the deal with Ecopetrol in Singapore. 

Earlier this year, India took advantage of cheap Russian crude oil on the spot market and boosted significantly its purchases of spot Russian supply, to the point that Russia overtook Saudi Arabia to become India's second-largest supplier of crude oil behind Iraq. Before the Russian invasion of Ukraine, India was a small marginal buyer of Russian oil.

In September, however, India was expected to slow purchases of Russian oil and look to more African and Middle Eastern supply as shipping rates on longer voyages jumped.

Indian refiners haven’t expressed hesitation to deal with Russia—their primary incentive to buy was 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.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Mamdouh Salameh on October 05 2022 said:
    India is a major buyer of Russian crude oil and will continue to do exactly that even when an EU embargo on Russian crude oil exports comes into effect by the end of the year.

    India is also of the world’s biggest refiners. This means that a lot of the petroleum products imported to the United States and the EU are Russian crude oil imported and refined by Indian refineries then shipped to the world.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

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