Page 5 - AsianOil Week 05 2023

AsianOil PIPELINES & TRANSPORT AsianOil

Indian imports of Russian oil could break

records in 2023

INDIA REPORTS from India point towards oil imports continue in line with long-standing supply
from Russia hitting new highs this year. contracts, while Russian shipments will now be
India has taken If so, it will be a major turnaround for a nation snapped up as and when needed.
advantage of Urals’ once seen as a fringe player in terms of imports to Authorities in India also say that Russia’s next
steep discount. the subcontinent just a few years ago. crude shipment could arrive later in the month,
Imports of Russian crude by New Delhi with Indian refineries waiting to convert the
increased throughout 2022. crude into diesel before selling it on to buyers
This was despite pressure on the government across the region and as far away as Europe.
of Narendra Modi from leading Western nations The irony of the oil making its way to India
and the European Union to fall into line with before then heading back to Europe was not
anti-Russian sanctions put in place as a response lost on Mukesh Sahdev, head of downstream oil
to Russia’s invasion of Ukraine. trading at Rystad Energy, last week. “It’s bit of a
India remains reliant on imported oil for over circular trade going on as India takes Russian
80% of its consumption. crude that Western buyers don’t want (before)
As such, New Delhi stayed committed to refining it into products for resale to the West,”
being allowed to make its own decisions on oil he said in a recent interview.
and gas imports, repeatedly pointing to domestic An ongoing EU embargo on seaborne
energy security as more important to the nation’s imports is having some effect on Russian crude
1.4bn population, than anti-Russian politics in movements, but India with its economic clout is
the West. In a knock-on effect, Russia contin- not a nation Western nations are willing to go
ued to offer discounted shipments, guarantee- head to head with just yet, and for the large part
ing a supply of foreign capital to finance its own remains unaffected.
energy infrastructure, in the process pushing According to Ben Cahill, Senior Fellow of
numbers exported to India to never-before-seen the Energy Security and Climate Change Pro-
levels. gramme in a piece for the Center for Strategic
This in turn increased the market share of and International Studies (CSIS) “a large disrup-
Russian imports to India to 15% of the year’s tion is certainly possible” in supplies, but this will
total, a huge rise on the 1% posted in 2021. likely be temporary at worst.
Saudi Arabia alongside Iraq continue to hold Cahill adds that “it is more likely that Rus-
the top two rankings on India’s list of crude sian exports will bounce back from a temporary
suppliers, but with Russia now up to third, decline in December, as weather-related chal-
overall imports of OPEC oil have decreased lenges subside and as buyers increase their com-
significantly. fort level with new shipping routes and terms.”
At least once source has now said OPEC And with some sources now saying that an
shipments to India are at their lowest level in a undisclosed number of “tankers holding some
decade, although it is unlikely numbers will drop 19mn barrels of crude left ports in the four
much further. weeks to December 30, showing no clear final
According to a Times of India report, indus- destination” according to Cahill, India could be
try executives in the nation’s capital have said receiving its next shipment of Russian crude very
that imports from Saudi Arabia and Iraq will soon. ™

Week 05 04•February•2023 www. NEWSBASE .com P5