India anticipates no disruption to its Russian oil imports until March, despite new U.S. sanctions on tankers shipping Russian crude. A senior Indian government official informed Reuters on Monday that sanctioned vessels will be permitted to discharge their cargoes until then.
The Indian government will allow the unloading of Russian oil cargoes booked before January 10 when they arrive at Indian ports, the official, who requested anonymity, said.
On Friday, the outgoing U.S. administration imposed strict sanctions on Russia’s oil industry. These measures targeted two major Russian oil companies—Gazprom Neft and Surgutneftegas—along with 183 vessels, oil traders, service providers, insurance firms, and energy officials.
Many of the newly sanctioned tankers have been transporting Russian crude to China and India over the past year, according to analysts and ship-tracking data. The sanctions have already affected oil markets and the purchasing strategies of Russia’s top buyers, China and India.
Following the announcement of the U.S. sanctions, oil prices surged, with Brent Crude rising above $80 per barrel, reaching its highest level in three months. On Monday, the rally continued, pushing Brent to a four-month high of over $81 per barrel.
However, prices are expected to fall below $80 per barrel in the long term, as there is no shortage of global oil supply, the Indian government official said. “The market is waiting for Russia to respond to the sanctions,” the official added, noting that Russia will likely find alternative ways to maintain exports.
India remains concerned about potential disruptions to Russian oil supply, which has become its largest source of crude. Over the past two years, India has significantly increased its imports of Russian oil, benefiting from cheaper crude and making Russia its primary supplier.
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