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Indian companies resumed buying oil from Russia after the discount increased, possible impact on China's supply
Oil Trade: Bharat Petroleum and Indian Oil have resumed buying Russian crude oil after the discount increased. Orders have been placed for September-October delivery. Earlier, purchases were stopped in July due to low discounts and US warnings. Now Urals is getting a discount of $3 per barrel. This may affect the supply of China, which was increasing purchases when India stopped.
Domestic government companies have resumed purchasing crude oil from Russia due to increased discounts. Bharat Petroleum and Indian Oil have restarted buying for September and October delivery. The discount on Russian oil had decreased significantly for some time, leading to a halt in purchases. The return of Russian oil imports by government refineries may reduce supplies to China, which is the top buyer. When domestic companies stopped buying, China increased its purchases. Domestic refineries ceased buying Russian oil in July after discounts dropped and due to criticism from the US. US President Donald Trump also threatened to impose an additional 25 percent duty on Indian goods from August 27 for buying Russian oil.
Officials said the discount on Urals crude has risen to three dollars per barrel, making it more attractive for refineries. Besides Urals, Indian Oil has purchased other Russian grades, including Varandey and Siberian Light.
The share of OPEC countries in India's total imports reached a five-month high in July. Russian oil imports decreased by 3.6 percent to 17.3 lakh barrels per day from January to July. For the first time since 2011, India did not import oil from Latin America in July.
