Oil Price: India races against time to replace Russian crude with Iraqi oil

A report by OilPrice.com on Monday confirmed that India is racing against time to replace Russian crude oil with Iraqi, American, and Emirati oil due to sanctions imposed by the United States, Britain, and other Western countries on Russian crude. The report, translated by the Information Agency, stated that “two Indian refineries purchased a total of 5 million barrels of crude oil from the United States, Iraq, and the UAE on the spot market, seeking alternatives to Russian crude.”

It added that “Hindustan Petroleum purchased 2 million barrels of West Texas Intermediate crude and 2 million barrels of Murban crude for delivery in December, while another refiner, Mangalore Refinery and Petrochemicals, purchased 1 million barrels of Basra Medium crude, also for delivery in January.”

He added that “the search for alternative oil supplies comes in the wake of the Trump administration’s decision last month to impose sanctions on Rosneft and Lukoil, which together account for half of Russia’s oil exports and a significant portion of India’s imports from the country. The sanctions have sparked a rush to secure supplies before they take effect on November 21, as oil buyers seek loopholes to maintain access to Russian crude at discounted prices.”

Meanwhile, Bloomberg reported an unusual move by two tankers, both subject to EU and UK sanctions, after they conducted a ship-to-ship transfer off the Indian coast last week. Bloomberg stated that one of the tankers, the Elana, had been anchored for two weeks prior to the transfer. Following the transfer, the receiving tanker, the Forties, continued its journey to the Indian port of Kochi, while the Elana sailed to Russia.

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