Russian Oil Supplies to India
Russian oil supplies to India in December 2023 may reach their lowest level in the last three years, amounting to about 1.1 million barrels per day. This is the lowest figure since November 2022. After a drop in supply volumes in July, the situation partially recovered, but procurement rates remain low.
Indian companies, including Indian Oil Corp. and Bharat Petroleum Corp., have returned to purchasing Russian oil, but at lower prices. The Reliance company, after the introduction of U.S. sanctions in late October 2023, initially suspended purchases but later resumed them. However, in the second week of December, supplies slowed to 712,000 barrels per day, below the forecasts of Indian officials who expected 800,000 barrels per day.
Factors Affecting Supply Volumes
- Mangalore Refinery and Petrochemicals Ltd. did not purchase any barrels of Russian oil in December 2023 for the first time since September 2022.
- Nayara Energy Ltd. plans to postpone the scheduled maintenance of its plant in Vadinar.
These factors indicate an overall decrease in Russian oil supply volumes to India, which may have further implications for the oil market in the region.
The decrease in Russian oil supplies to India may indicate a shift in dynamics in energy markets, especially in the context of global sanctions and restrictions imposed against Russia. This may affect oil prices and procurement strategies of Indian companies seeking alternatives amid decreasing supplies.
Furthermore, a prolonged reduction in procurement volumes may impact the stability of the oil market in the region and pose new challenges for India's energy security.