India significantly ramps up oil shipments from Russia
Date
10/6/2024 8:59:33 AM
(MENAFN) India has significantly ramped up its oil imports from Russia, reflecting a broader rise in hydrocarbon demand as the country approaches the Diwali festive season. According to analytics firm Kpler, reported by the Indian Express, shipments from Russia to India surged by 6.4 percent in September compared to August, reaching an impressive 1.88 million barrels per day. This figure now constitutes 40.2 percent of India's total oil imports.
Analysts attribute the uptick in Russian oil imports to the anticipated resumption of operations at various refineries that had been undergoing maintenance, with most expected to be back online starting in October. The report emphasized that India is acutely aware of oil price fluctuations. Despite a gradual narrowing of discounts on Russian crude, Indian refiners remain keen on maintaining their purchases due to the substantial savings that even modest discounts can yield, given the high import volumes.
Viktor Katona, head of oil analytics at Kpler, remarked that the anticipated decline in India's oil purchases from Russia did not materialize as some had expected. Interestingly, there was a notable increase in oil imports from Saudi Arabia as well, with the kingdom reportedly reducing its prices to capture a larger share of the Indian market.
Looking ahead, Katona indicated that imports from Russia might continue to rise as Indian refineries explore the possibility of securing long-term contracts for energy supplies. Business Standard has reported, citing sources within India's Ministry of Petroleum and Natural Gas, that state-owned oil refiners are currently in discussions with Russia to finalize long-term supply agreements. These deals could be concluded by April, coinciding with the beginning of the new fiscal year.
As India continues to navigate its energy needs in a complex global market, the increasing reliance on Russian oil underscores the evolving dynamics of energy trade and the importance of strategic partnerships in ensuring supply security. The upcoming festive season, marked by heightened energy demand, will likely influence these trends further as India aims to balance affordability and supply reliability.
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