Indian oil refiners are ramping up their purchases of Russian crude oil as the November 21 deadline for new U.S. sanctions approaches. These sanctions specifically target Russian oil giants Rosneft and Lukoil. Despite the looming restrictions, the Indian government is staying tight-lipped about its plans to deal with potential supply interruptions.
Recent data from Kpler, a global analytics firm, reveals that India imported 1.62 million barrels per day of Russian crude in October, which is roughly the same amount as in September. As the deadline draws near, increased shipments are expected as refineries rush to fulfill contracts.
Major refiners, such as Indian Oil Corporation, Bharat Petroleum, and Nayara Energy, have prioritized Russian shipments to safeguard their supplies. Notably, Nayara has managed to cover nearly all of its crude needs in October, thanks to its relationship with Rosneft.
These U.S. sanctions are part of a broader strategy to constrain Russia’s energy sector amid the ongoing conflict in Ukraine. They focus on companies and financial entities involved in trading Russian oil.
Government officials have indicated that India will continue to prioritize energy security and affordability for consumers. According to these officials, refiners have the freedom to source crude from reliable options. Should Russian supplies dwindle after November, refiners may turn to Iraq, Saudi Arabia, the UAE, Latin America, and West Africa. Interestingly, U.S. crude shipments to India saw a significant increase in October, tripling to roughly 568,000 barrels per day.
Experts believe that despite increasing pressure from the West, India’s government is unlikely to change its approach. The focus remains firmly on keeping fuel prices affordable for a growing economy. As the world’s third-largest crude consumer, India is expected to diversify its sources to prevent shortages while steadying domestic prices.
In recent social media discussions, many users have expressed concerns about dependency on Russian oil, while others point out the need for stable supply chains to ensure economic growth. Balancing international pressure with internal needs will be critical for policymakers in the upcoming months.
For further reading, you can find more about the impact of these sanctions on global oil markets in reports from sources like the U.S. Energy Information Administration (EIA).
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energy security, indian oil refiners, indian energy security
