(MENAFN- Live Mint)

New Delhi: The government hasn't issued any orders to state-run refiners and oil marketing companies (OMCs) to halt energy imports from Russia, officials said on Thursday, after US president Donald Trump claimed that prime minister Narendra Modi had assured him that New Delhi will stop buying oil from Moscow.

Three officials with state-run refiners said that imports continue from Russia, although supplies have somewhat declined as discounts have narrowed.

“There is no directive from the government to curtail or halt Russian oil imports. They will continue to flow in. However, due to commercial factors, such imports declined in September," said one of the three officials cited earlier, all of whom spoke on the the condition of anonymity.

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Global real-time data and analytics provider Kpler showed that India's imports of Russian crude in September stood at 1.6 million barrels per day (bpd), about 5% lower than 1.69 million bpd in August. However, so far in October, imports stand at 1.77 million bpd.

Indian Oil Corp Ltd's (IOCL) crude imports from Russia stand around 22-23% of its overall, while imports by Hindustan Petroleum Corp Ltd's (HPCL) stand at 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 slimmed in September, making West Asian oil more attractive, said an industry executive. Discounts in September were around $2 per barrel, according to traders and industry sources. Currently, discounts on Russian are around $2-4 per barrel.

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Prashant Vasisht, senior vice-president and co-group head, corporate ratings, ICRA Ltd, said: "ICRA believes domestic refiners will purchase crude from various sources guided by economics and availability."

While the overall volumes of Russian crude remain high, the discounts have been coming down, making purchases from West Asia more attractive because of the geographical proximity to India, he said.

Global oil markets witnessed an uptick in prices on Thursday, after reaching a five-month low in the previous session, as Trump said Indian Prime Minister Narendra Modi had promised to halt purchases of Russian barrels-a move that could tighten global supply.

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 be buying oil from Russia. That's a big step. Now we're going to get China to do the same thing."

Despite pressure from the US and EU to curb imports, India has consistently maintained that energy procurement decisions are guided by domestic demand and affordability.

Also Read | India must boost domestic oil, gas to shield against geopolitical shocks:

Supply stable

“India is a significant importer of oil and gas. It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective. Ensuring stable energy prices and secured supplies have been the twin goals of our energy policy. This includes broad-basing our energy sourcing and diversifying as appropriate to meet market conditions," Randhir Jaiswal, spokesperson, ministry of external affairs, said on Thursday.

Speaking to reporters later in the day, Jaiswal said that no telephonic conversation took place between Trump and Modi on Wednesdsay.

'"Where the US is concerned, we have for many years sought to expand our energy procurement. This has steadily progressed in the last decade. The current administration has shown interest in deepening energy cooperation with India. Discussions are ongoing," Jaiswal said in a tweet.

Amid the ongoing talks for a bilateral trade agreement, India has reiterated its commitment to increase energy trade with the US.

Union commerce secretary Rajesh Agarwal, who left for Washington on Wednesday to join the negotiations for the bilateral trade agreement (BTA), told reporters in Delhi that India would be willing to step up its purchases of American oil and gas if prices are competitive.

India, on average, imports $12–13 billion worth of crude oil and gas from the US every year. There is headroom for an additional $12–13 billion in purchases without requiring any changes to refinery configurations, he said, adding that India will consider buying more energy products, keeping in view the cost dynamics.

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