Indian state-owned refiners seen halting Russian crude imports – report

Quantum Commodity Intelligence – Two of India's major state-owned refiners have stopped seeking further imports of spot Russian crude oil supply set to arrive after December 5, the day on which the EU embargo on Russian oil shipments comes into effect, according to a Bloomberg report.

The two refiners are Indian Oil Corporation and Bharat Petroleum Corporation Limited (BPCL), sources familiar with the Indian firms' procurement plans told Bloomberg on Tuesday.

The European Union has further sanctioned Russian crude oil imports beginning in early December, while details are still being discussed on the proposed price cap.

Reuters reported that India said on Wednesday it will examine a proposal by Western nations to impose a price cap on Russian oil purchases, even as some local refiners have lined up Russian cargoes for delivery post December 5, when the cap is set to take effect.

The report noted IOC has lined up delivery of 3-4 cargoes of Russian oil after 5 Dec., while Bharat is in the process of finalising cargoes for delivery in December.

Sources told Reuters that Indian companies have time at least till end-October to place requests for more Russian oil cargoes for deliveries in December as the bulk of the purchases of Russian oil are made through spot contracts.

"5th Dec is not a roadblock, we continue upliftment as per requirement and based on viable commercial offers received," said an official at one of the Indian state refiners.

Another source said a halt of Russian oil purchases by India will create a 'huge energy imbalance', which will not be affordable to some economies. "It will be trouble for everybody so I am sure a solution will emerge in the next few days," he said.