Three state refinery officials said imports from Russia continued, although supplies fell somewhat as discounts narrowed.
“There is no directive from the government to limit or stop Russian oil imports. They will continue to flow in. However, due to commercial factors, these imports decreased in September,” said one of the three officials cited above, all of whom spoke on condition of anonymity.
Global real-time data provider and analyst Kpler showed India’s imports of Russian crude were 1.6 million barrels per day (bpd) in September, down about 5% from August’s 1.69 million bpd. However, so far in October, imports have been 1.77 million barrels per day.
Indian Oil Corp Ltd’s (IOCL) crude imports from Russia are around 22-23% of the total, while Hindustan Petroleum Corp Ltd’s (HPCL) imports are around 15%, the official said.
Queries emailed to the Union Ministry of Petroleum and Natural Gas, IOCL, HPCL and Bharat Petroleum Corp Ltd (BPCL) remained unanswered till press time.
Discounts offered by Russia eased in September, making West Asian crude more attractive, an industry executive said. Discounts in September were around $2 a barrel, according to traders and industry sources. Currently, Russian discounts are around 2-4 dollars per barrel.
Prashant Vasisht, Senior Vice President and Joint Group Head, Corporate Ratings, ICRA Ltd, said, “ICRA believes that domestic refiners will purchase crude from various sources based on economics and availability.”
While overall volumes of Russian crude remain high, discounts are narrowing and purchases from West Asia are more attractive because of India’s geographical proximity, he said.
Global oil markets saw prices rise on Thursday after hitting five-month lows in the previous session when Trump said Indian Prime Minister Narendra Modi had promised to halt purchases of Russian barrels – a move that could tighten global supplies.
Speaking to reporters at the White House on Wednesday, Trump said: “So I was not happy that India was buying oil, and he (Prime Minister Narendra Modi) assured me today that they will not buy oil from Russia. That’s a big step. Now we’re going to get China to do the same.”
Despite pressure from the US and the EU to curb imports, India has consistently maintained that energy purchase decisions are driven by domestic demand and affordability.
Stable supply
“India is a major importer of oil and natural gas. Our constant priority has been to protect the interests of the Indian consumer in an unstable energy scenario. Our import policy is guided solely by this objective. Ensuring stable energy prices and assured supply have been the two objectives of our energy policy. This includes a broad base of our energy sources and appropriate diversification to meet market demands. terms,” Foreign Affairs spokesman Randhir Jaiswal said on Thursday.
Speaking to reporters later in the day, Jaiswal said there was no phone conversation between Trump and Modi on Wednesdsay.
“As for the US, we have sought to expand our energy supply for many years. This has made steady progress over the past decade. The current administration has shown interest in deepening energy cooperation with India. Discussions are ongoing,” Jaiswal said in a tweet.
Amid ongoing talks on a bilateral trade deal, India reiterated its commitment to increase energy trade with the US.
Union Commerce Minister Rajesh Agarwal, who left for Washington on Wednesday to join talks on a bilateral trade agreement (BTA), told reporters in New Delhi that India would be willing to increase purchases of US oil and gas if prices are competitive.
On an average, India imports $12-13 billion worth of oil and gas annually from the US. There is a margin for additional purchases of $12-13 billion without reconfiguring refineries, he said, adding that India will consider buying additional energy products, taking into account cost dynamics.
