India’s Crude Oil Trade Shifts Amid Sanctions and Supply Diversification

Key Highlights

• U.S. Crude Surge: India's imports from the U.S. reached 357,000 bpd, a two-year high.
• Russian Imports Decline: Russian crude shipments to India fell to 1.41 million bpd.
• Sanctions Impact: U.S. sanctions on Russian oil firms led to an 18.4% revenue drop.
• Market Shift: Indian refiners continue diversifying, with Middle Eastern suppliers stepping in.

Petroleum Price Trends: Regional Variations and Market Adjustments

• Base Oil (N150) is priced at ₹69 per litre in Delhi, while Base Oil (SN150) is available at ₹61 per litre in Kandla. 
• Fuel Oil (Virgin 180cST Furnace Oil) in Mumbai is priced at ₹47.5 per kg, whereas the 180cST Furnace Oil variant is slightly higher at ₹49 per kg. 
• Low Sulphur Heavy Stock (LSHS) Fuel Oil is listed in Jamnagar. In Bhiwadi, LubriEdge Hydraulic Oil (Hydraulic Oil 68) is priced at ₹87 per litre. 
• Gear Oil (Gear Oil 150) is available at ₹119 per litre in buckets and ₹115 per litre in barrels. 
• Rust Preventive Oil (Water Displacing Type - WDM) is consistently priced at ₹122 per litre. 
• Metal Working Fluids, including Soluble Cutting Oil, are available at ₹112 per litre, while Quenching Oil 32 is priced at ₹134 per litre.

Shifting Demand & Supply: India’s Refiners Adapt to Changing Import Dynamics

• India’s crude oil imports from the U.S. surged to a two-year high in February, reaching 357,000 barrels per day (bpd) as refiners sought alternatives to Russian supplies due to tightening U.S. sanctions. 
• Meanwhile, Russian crude imports to India declined slightly to 1.41 million bpd, down from 1.49 million bpd in January. 
• India's overall crude imports remained steady at 4.77 million bpd, with Middle Eastern suppliers expected to fill the gap left by Russia. 
• This shift highlights India's ongoing efforts to diversify its crude sources, particularly light-sweet barrels, while maintaining cost-effectiveness. 
• Major buyers of U.S. crude include Indian Oil Corp, Reliance Industries, and Bharat Petroleum, while key sellers from the U.S. include Occidental Petroleum, Equinor, and ExxonMobil.

Market News: Sanctions on Russia Reshape Global Oil Trade

• The U.S. imposed fresh sanctions on Russian oil producers Gazprom Neft and Surgutneftegas and blacklisted 180 tankers on January 10, further restricting Russia’s crude export capabilities. 
• As a result, Russia’s oil and gas revenue fell by 18.4% in February, amounting to 771.3 billion roubles ($8.62 billion). This decline is driven by lower European demand, reduced access to global shipping, and increased competition from Middle Eastern suppliers. 
• Additionally, U.S. crude exports to South Korea hit a record 656,000 bpd, influenced by China’s 10% tariff on U.S. oil, redirecting trade flows.

Expert Insights: India’s Refining Strategy Amidst Evolving Global Supply Chains

• Indian refiners are expected to further diversify crude imports, increasing reliance on Middle Eastern and U.S. supplies as Russian crude shipments face growing logistical and regulatory hurdles. 
• With sanctions tightening and demand from alternative suppliers rising, India’s energy market will likely see more competitive pricing and shifting trade routes in the coming months.