Indian Refiners Eye Cheaper Russian Oil From Non-Sanctioned Sellers
OIL & GAS

Indian Refiners Eye Cheaper Russian Oil From Non-Sanctioned Sellers

A section of Indian oil refiners is considering buying non-sanctioned Russian crude as prices fall to the steepest discount in two years, following US sanctions on top producers Rosneft PJSC and Lukoil PJSC that have disrupted a once-lucrative trade.

The price of the Urals blend for Indian buyers has dropped to a discount of up to USD 7 per barrel to dated Brent on a delivered basis, for cargoes loading in December and arriving in January, according to people familiar with the matter. Most Indian refiners had paused purchases of Russian crude arriving after the sanctions on Rosneft and Lukoil took effect last week, effectively curtailing a trade that surged after Russia’s 2022 invasion of Ukraine, when India capitalised on discounted supplies.

On Thursday, Reliance Industries, India’s largest refiner, announced that it has stopped importing Russian crude for its SEZ refinery in Jamnagar from 20 November. From 1 December, all product exports from this refinery will be derived from non-Russian crude. The final cargo subject to the new rules was loaded on 12 November, the company said. Any Russian cargo arriving after sanctions began will be processed only at the refinery supplying the domestic market.

However, sentiment among Indian refiners has shifted in recent days as Urals prices have fallen further. Some processors are now open to purchasing Russian oil from non-sanctioned entities, though only about one-fifth of currently offered cargoes are free of links to blacklisted sellers, the sources noted.

Before the latest sanctions, Urals crude was trading at a discount of around USD 3 per barrel. The US curbs, which follow earlier sanctions on Gazprom Neft PJSC and Surgutneftegas PJSC, have led Indian refiners to increase purchases from other regions, including West Asia.

Data from global analytics provider Kpler show that Russian crude supplies to India averaged 982,000 barrels per day (bpd) between 1 and 20 November, compared with an average of 1.75 million bpd from January to September. Despite near-term declines, Kpler forecast last week that a complete halt to Russian imports remains unlikely.

A section of Indian oil refiners is considering buying non-sanctioned Russian crude as prices fall to the steepest discount in two years, following US sanctions on top producers Rosneft PJSC and Lukoil PJSC that have disrupted a once-lucrative trade. The price of the Urals blend for Indian buyers has dropped to a discount of up to USD 7 per barrel to dated Brent on a delivered basis, for cargoes loading in December and arriving in January, according to people familiar with the matter. Most Indian refiners had paused purchases of Russian crude arriving after the sanctions on Rosneft and Lukoil took effect last week, effectively curtailing a trade that surged after Russia’s 2022 invasion of Ukraine, when India capitalised on discounted supplies. On Thursday, Reliance Industries, India’s largest refiner, announced that it has stopped importing Russian crude for its SEZ refinery in Jamnagar from 20 November. From 1 December, all product exports from this refinery will be derived from non-Russian crude. The final cargo subject to the new rules was loaded on 12 November, the company said. Any Russian cargo arriving after sanctions began will be processed only at the refinery supplying the domestic market. However, sentiment among Indian refiners has shifted in recent days as Urals prices have fallen further. Some processors are now open to purchasing Russian oil from non-sanctioned entities, though only about one-fifth of currently offered cargoes are free of links to blacklisted sellers, the sources noted. Before the latest sanctions, Urals crude was trading at a discount of around USD 3 per barrel. The US curbs, which follow earlier sanctions on Gazprom Neft PJSC and Surgutneftegas PJSC, have led Indian refiners to increase purchases from other regions, including West Asia. Data from global analytics provider Kpler show that Russian crude supplies to India averaged 982,000 barrels per day (bpd) between 1 and 20 November, compared with an average of 1.75 million bpd from January to September. Despite near-term declines, Kpler forecast last week that a complete halt to Russian imports remains unlikely.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code