Indian refiners are seeking alternative crude oil suppliers like Venezuela and Angola and considering rerouting shipments around Africa to avoid the Red Sea. This comes as Houthi attacks disrupt vital shipping lanes, pushing Brent crude prices above $100 a barrel.
India's imports of Russian crude oil reached a record high in June. Reports suggest India is supplying gasoline to Russia, likely through traders, to meet domestic demand exacerbated by Ukraine war-related refinery damage. Indian refiners can produce the required gasoline grades.
Saudi Arabia dramatically cut crude oil prices by $11 a barrel for August, the steepest drop in 26 years, signaling intense competition among producers. This move, following a previous $6 cut, brings oil prices to pre-Feb 28 levels and is expected to benefit India by reducing refiner losses and government subsidy bills.
Indian Oil Corp and Hindustan Petroleum Corp have collectively purchased approximately 7 million barrels of crude oil via recent tenders. Deliveries are expected between August and September, enhancing India's energy supply.
India's state-owned oil refiners Indian Oil Corp and Hindustan Petroleum Corp purchased approximately 7 million barrels of crude oil last week. This comes as the country's crude inventories have recovered significantly after disruptions.
India's oil imports reached a record 4.93 million barrels per day in June, with Russia supplying over half. This surge occurred despite Middle East tensions, highlighting India's successful diversification and procurement strategies.
Indian refiners are unlikely to significantly increase purchases of Iranian crude despite a 60-day US sanctions waiver. Factors limiting new buying include uncertainty over the waiver's duration, payment constraints, and existing supply commitments, according to analyst Sumit Ritolia.
Indian refiners are being offered discounted Iranian crude and LPG by NIOC and middlemen following a 60-day US sanctions waiver. Despite renewed interest, refiners have limited immediate capacity due to existing commitments, and payment uncertainties delay commercial talks.
Kunal Shah, founder of Indian fintech CRED, will head WhatsApp. Meta also invested $900M in CRED. Meanwhile, the US has temporarily lifted sanctions on Iranian oil exports, potentially allowing Indian buyers to resume imports after years of restrictions.
Indian refinery executives anticipate oil prices dropping below $80/barrel within weeks if a US-Iran deal is signed Friday, reopening the Strait of Hormuz. This would end hostilities, lift the US naval blockade, and allow Iranian crude back to global markets.
Falling global energy prices, potentially due to a US-Iran agreement, could offer relief to Indian refiners and gas consumers. Brent crude has dropped to nearly $83/barrel, impacting India's 88% crude import dependence. LNG prices, though moderated, remain elevated.
Indian refiners have secured sufficient crude oil and LPG supplies to last through August and mid-July, respectively, by increasing purchases from suppliers like ADNOC and through spot tenders, amid ongoing Middle East energy supply disruptions.
Indian refiners are adjusting plants to process difficult crude grades and boost fuel output due to disruptions from the Iran conflict and potential Strait of Hormuz closure. Technology licensors like Lummus Technology are assisting in optimizing yields and adapting assets.
Indian refiners increased oil imports from Venezuela, Brazil, Angola, and Nigeria due to Middle East supply disruptions caused by the Israel-US war. Russia remained a key supplier, though its share decreased. Overall imports were steady in April but down year-on-year.
Indian refiners are shifting crude oil imports from the Middle East to Latin America and Africa due to shipping disruptions in the Strait of Hormuz caused by the Israeli-U.S. war. Despite reduced Russian oil imports in April, Russia remains India's top supplier, followed by the UAE and Saudi Arabia.
Venezuela has become India's third-largest crude oil supplier in May, overtaking Saudi Arabia and the US, as refiners seek cheaper heavy crude amid West Asia conflict disruptions. Imports from Venezuela surged to 417,000 bpd.
The US has extended a sanctions waiver for 30 days, allowing countries to buy Russian seaborne crude. This move aims to stabilize global markets and aid vulnerable nations, potentially softening prices and benefiting Indian refiners who have increased purchases from Russia.
Indian refiners have doubled their Russian oil purchases for April to 60 million barrels, paying premiums above Brent benchmarks as the US-Israeli conflict with Iran disrupts shipping through the Strait of Hormuz.
