.jpg)
3 hours ago
1
Crude oil purchases by Indian Oil Corp. may shift as the new US sanctions on Russia affect supplies from Moscow, pushing the South Asian country’s biggest refiner to seek alternatives.
Author of the article:
Bloomberg News
Rakesh Sharma
Published Jan 22, 2025 • 2 minute read
(Bloomberg) —
Article content
Article content
Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here.
Crude oil purchases by Indian Oil Corp. may shift as the new US sanctions on Russia affect supplies from Moscow, pushing the South Asian country’s biggest refiner to seek alternatives.
Before the Russia-Ukraine war, India used to buy less than 2% of it’s total oil imports from Moscow. However, the volume surged to almost 45% in the middle of last year, according to data compiled by analytics firm Kpler, after Russia offered deep discounts. India’s inbound shipments from traditional suppliers like Saudi Arabia declined.
Advertisement 2
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
“Whatever has shifted to Russia was the spot market only,” Arvinder Singh Sahney, chairman of India’s third-largest company by revenue, said Wednesday. “Now we will rebalance.”
The US imposed its most aggressive sanctions on Russia yet on Jan. 10 as the Biden administration looked for last-minute ways to boost Ukraine’s leverage in possible peace negotiations. The measures targeted two oil producers, 160 tankers and traders linked to hundreds of cargoes.
The sanctions may impact daily flows of as much as 2 million barrels to India and China, Sahney told Bloomberg Television on the sidelines of the World Economic Forum in Davos. India will tap suppliers, such as OPEC producers, the US, Guyana and Brazil, to fill any shortfall, he added.
“We have enough sources, we have enough collaborations, we have enough geopolitical and commercial alliances going forward,” he said.
Russia exported 4.6 million barrels a day in December, according to the International Energy Agency. About 1.5 million barrels a day came to India from Moscow last month, Kpler data showed.
Oil prices rose after the US sanctions, but are likely to remain rangebound between $75-$80 a barrel in the short- to near-term, Sahney said.
The New Delhi-based company owns nine out of 23 refineries in India, accounting for more than one-fourth of the country’s total installed base of 5.2 million barrels a day. The refiner is on track to expand capacity by as much as a quarter by 2027-28 to meet the growing economy’s demand.
Indian gasoline demand will continue to grow, Sahney said. “Although diesel demand growth is temporarily subdued, we expect it to rebound in the near future.”
—With assistance from Menaka Doshi and Francine Lacqua.
Article content
English (US)