WPB news indicates that a government official has told that Indian refineries have received a steady supply of Russian crude oil despite Russia's refining activities being disrupted in recent days due to Ukrainian attacks on its oil facilities. The attacks have diminished the refining capacity of Russia, with additional crude in the market.
The official, who requested anonymity in view of the diplomatic nature of the topic, further noted that India's imports of Russian oil are steady despite mounting external political pressure. The United States has been urging New Delhi to discontinue purchases of Russian oil and has reportedly imposed higher tariffs—up to 50%—on some Indian imports for failing to fall into line.
Nonetheless, Indian refiners continue to favor Russian crude, which remains relatively less expensive despite narrowing differentials. Russia's Urals blend that had earlier traded at a discount of nearly $20–$25 per barrel to dated Brent at the start of the crisis in 2022 now offers a much smaller discount of approximately $2–$2.50 per barrel for future shipments.
Industry analysts report that Ukraine's constant drone strikes at refineries and export terminals have sometimes lowered Russia's refining production by as much as 20%, limiting shipments from key ports and compelling Moscow to reassess overall levels of production. Refinery disruption in the recent period has been comparable to the earlier period, further limiting operations.
As new market realities, Indian companies also envision increased energy imports from the US, in the shape of crude oil and liquefied petroleum gas. But the extent of such diversification would largely be contingent upon the trajectory of the ongoing trade talks between Washington and New Delhi.
To conclude, while geopolitical tensions and sanctions continue to be the prime drivers of world oil flows, India's pragmatic energy policy mirrors its desire for balancing economic interests with diplomatic interests—garnering a stable supply chain in the light of shifting global alignments and market unpredictability.
By WPB
Oil, Petroleum, Crude
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