India is looking for a replacement for Russian oil
Due to US sanctions and Russia's requirements to pay in yuan, India is gradually abandoning Russian oil, Bloomberg reports.
Even though Russia is still the main supplier of oil to India, the country is now forming a trend to increase imports from other countries.
In particular, shipments from Saudi Arabia this month increased by 22% compared to January. In particular, India's largest private refinery Reliance Industries Ltd purchased the largest volume of Saudi crude since May 2020, according to Kpler data.
It is noted that Indian oil refiners would not mind buying more Russian crude, but need US permission to increase purchases again. The price of Russian oil is now cheaper by only 2-4 dollars per barrel. Previously, discounts for Russian oil exceeded $30, but double-digit discounts are unlikely to return due to competition from China.
India's imports of Russian oil surged after the full-scale invasion as oil refiners took advantage of cheaper barrels that other buyers avoided. OPEC+ producers accounted for about half of the country's purchases last year at peak oil production, but new U.S. sanctions have recently halted some shipments.
In addition, Moscow is demanding payment in yuan because of increased scrutiny of some banks' use of dirhams for settlements over the past few months, which also complicates the process for India.
Author - Serhii Kolomiets, 02/03/2024
