India considers buying oil from Middle East amid reduced russian supplies — Reuters

Indian state-owned oil refiners Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum are considering buying crude from Middle East amid reduced russian supplies, Reuters reported, citing sources.

According to the sources, Indian Oil, Bharat Petroleum and Hindustan Petroleum are currently short 8-10 million barrels of russian oil for January 2025 loading.

The companies fear that problems with obtaining russian oil on the spot market may persist in the coming months due to growing domestic demand and the need to meet OPEC commitments.

Reuters sources said the companies could use their reserves to meet their refining needs in March.

Two of the sources added that their company could get more oil from Middle Eastern suppliers under optional volumes under forward contracts or to participate in a spot tender for the supply of high-sulfur crude.

The agency notes that Indian Oil Corp has previously announced spot tenders for sour grades in March 2022.

India has no sanctions on russian oil, so its refiners are profiting from supplies that have become cheaper than competing grades by at least USD 3-4 per barrel due to sanctions.

The sources said there are traders in the market willing to supply russian oil for payment in Chinese yuan, but noted that state-owned refineries have stopped paying for russian oil in Chinese currency after the government's recommendations last year.

"It's not that there are no alternatives to Russian oil on the market, but our economy will suffer," one of the sources told Reuters.

As the Ukrainian News agency earlier reported, on December 23, Bloomberg reported, citing sources, that russia had probably found a way to force Indian companies to sign long-term contracts for oil supplies.

Earlier this month, it became known that russia and India had signed the largest oil deal in the history of relations between the two countries.

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