India Makes Big Russian Oil Purchase Amid Global Supply Worries
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Indian refiners have bought approximately 60 million barrels of Russian oil for delivery in April, easing supply concerns as the Middle East war disrupts global flows.
The cargoes were booked at premiums of $5 to $15 a barrel to Brent, with the volume similar to this month's purchases but more than double that of February, according to data intelligence firm Kpler.
The buying spree followed a US waiver that allowed India to take Russian oil already loaded onto vessels before March 5 to offset shortages caused by the effective closure of the Strait of Hormuz.
India is heavily reliant on imported oil and became a major buyer of discounted Russian crude following the invasion of Ukraine in early 2022.
However, India sharply cut back purchases from late last year under US pressure, turning instead to barrels from Saudi Arabia and Iraq, much of which then became trapped inside the Persian Gulf after the outbreak of the war.
Refiners such as Mangalore Refinery & Petrochemicals Ltd. and Hindustan Mittal Energy Ltd., which had avoided Russian oil since December, have returned to the market.
Indian processors are also looking elsewhere to diversify their supply as the war drags on, with the country's purchases of Venezuelan crude for April arrival projected at 8 million barrels, the highest since October 2020, according to Kpler.
Russia is reaping bumper profits on renewed demand and elevated prices for its oil, earning the most from its crude exports since March 2022, shortly after Moscow's troops poured into Ukraine.
