Tightening US sanctions are worsening India's oil trade with Russia, forcing refiners to consider other supplies. This is reported by Bloomberg with a link to oil refinery executives familiar with the situation.
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Russia is still India's dominant oil supplier, but there are signs that refiners are buying more from other countries.
Total imports from Saudi Arabia this month are 22% higher than in January, according to Kpler. , with the largest private oil refiner being Reliance Industries Ltd. — reached the highest volume since May 2020.
Indian refiners are keen to take more Russian oil, but US approval is needed to increase purchases again, executives said, asking not to be named as the information is confidential.
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Russian oil is now only $2-4 per barrel cheaper than other supplies, and double-digit discounts are unlikely to return due to competition for a barrel from China, executives say. After the war, the discount exceeded $30.
India's imports of Russian oil surged after the war as refiners took advantage of cheaper barrels that other buyers were avoiding.
Last year, OPEC+ producers accounted for about half of India's purchases, but new US sanctions have recently stopped some shipments.
Russia is also demanding payment in yuan due to increased scrutiny of some banks over the use of dirhams for payments over the past few months.