The BRICS country began to reduce purchases of Russian oil
Quick Look
Indian refineries have reduced purchases of Russian oil to a minimum since March 2022 due to almost disappeared discounts, reorienting themselves to supplies from the Persian Gulf countries.
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Why It Matters
Previously, Russian oil was sold at significant discounts, but the reduction of the discount and American sanctions led to a change in the structure of Indian imports.
Indian oil refineries have reduced purchases of Russian oil. This was reported by Bloomberg, citing its own sources.
It turned out that Russian oil, previously sold at significant discounts, now costs almost the same as Middle Eastern varieties. This is prompting Indian refineries to once again turn to suppliers from the Gulf countries.
In this regard, the publication recalled that the oil refineries of this BRICS country have already reduced purchases of Russian oil after the adoption of a law in the United States on sanctions for such imports. Moscow's share of India's crude oil imports fell to about 35 percent in September from 56 percent in July, according to data firm Kpler. In the four weeks through Oct. 4, shipments averaged just 310,000 barrels per day, the lowest since March 2022, according to tanker tracking data compiled by Bloomberg.
Meanwhile, supply volumes from the Middle East have increased as more tankers pass through the Strait of Hormuz, despite ongoing risks. According to Shell Plc CEO Wael Sawan, volumes have recovered to about 80 percent of pre-war levels.
Open Questions
- Will the downward trend in purchases continue in the long term?
- How will the pricing policy for Russian oil change?
