Indian imports of Russian oil have been running at a record pace as refiners go all out before a US waiver expires, with processors also broadening their slate of suppliers to cope with the Iran war's fallout.
So far in May, daily inflows have totaled an unprecedented 2.3 million barrels, according to Kpler data, as the waiver allowed imports of already-loaded Russian oil. Full-month flows may come in at a still-substantial 1.9 million barrels a day, Kpler's predictive data shows.
Photo Credit: Bloomberg
The oil market has been upended by the Iran war, which choked off flows from the Persian Gulf to major buyers including India, the third-largest crude importer. As part of efforts to contain soaring prices, the US first issued an India-specific waiver against taking Russian oil on March 5, allowing refiners to buy stranded cargoes. A week later, the US relaxation was broadened globally, and — following an extension — it is now due to expire on May 16.
If the waiver isn't extended, Indian processors could be forced to source alternative, pricier spot barrels, according to people familiar with their outlook, who asked not to be named due to the sensitivity of the matter.
Ahead of that, India's two biggest state refiners — Indian Oil Corp. and Bharat Petroleum Corp. — bought crude from West Africa and the US this week, according to traders familiar with the matter. These were so-called prompt cargoes, which would load as soon as this month, they said.
In addition, BPCL has begun exploring short-term supply agreements for Azeri and African grades to diversify away from its dependence on the Persian Gulf, people familiar with the discussions said.
IOC and BPCL didn't respond to requests for comment. India's oil ministry didn't reply to email seeking comment.
The US curbs against Russian oil had been part of efforts by Washington to raise the pressure against Moscow over its invasion of Ukraine. The relaxation reflects the trade-offs the Trump administration has been forced adopt for its war against Tehran, which began in February and led to the near-total closure of crude flows through the Strait of Hormuz.
Brent futures traded above $108 a barrel on Wednesday, up 78% this year.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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