India’s state-run Bharat Petroleum Corporation Limited (BPCL) has ramped up its crude oil purchases from the Middle East as Russian supply has dwindled in recent weeks, according to Vetsa Ramakrishna Gupta, BPCL’s head of finance.
Gupta explained in an interview with Reuters that BPCL, which typically buys affordable Russian crude on the spot market, is no longer receiving its full allotment of Russian oil, unlike earlier this year.
“We may be missing two to three cargoes per month,” Gupta said. “To make up for the shortfall in Russian crude, we are sourcing oil from the Middle East.”
BPCL has recently turned to Oman for additional crude oil to fill the gap left by the reduced Russian supply. Gupta added that if Russian supply continues to lag, BPCL will consider other options, including U.S. West Texas Intermediate (WTI) crude and more oil from the Middle East, depending on which is more cost-effective.
Since Russia’s invasion of Ukraine, India has significantly increased its imports of Russian crude, with Russia becoming India’s largest supplier due to the appeal of lower-priced oil. However, India’s imports of Russian oil fell in November, while purchases from the Middle East surged. This was due to a combination of lower Russian exports and maintenance at some Indian refineries.
Ship-tracking data obtained by Reuters showed that in November, India imported 1.52 million barrels per day (bpd) of Russian crude, a 13% drop from October. Meanwhile, imports from the Middle East rose by 10.8% during the same period.
Despite the decrease in Russian shipments, Russia remained India’s top oil supplier in November, ahead of Iraq and Saudi Arabia.
Related Topics:
- EIA Reports Smaller-Than-Expected Drop in Crude Inventories
- Europe Increases Pressure on Russia’s Oil Trade
- North Dakota Crude Output Cut by 520,000 b/d After October Fires