Russian Oil Discounts To India On The Rise

New Delhi, Dec 18 (KNN) Indian refiners are expected to benefit from heightened discounts on Russian oil as global demand diminishes and India explores avenues for diversifying its oil supplies, reported Mint.

Informed sources have disclosed that the current discounts, standing at USD 4-6 per barrel, are expected to experience an increase, potentially reaching USD 10-12 per barrel in the imminent future, reported Mint.

According to an industry insider who preferred to remain anonymous, the decrease in global demand has compelled exporting nations to enhance their proposals, as reported by Mint.

Additionally, with the decline in oil prices, he added, Russia is also expected to intensify efforts to meet the demands of India, a significant procurer of its supplies over the past two years.

Russian crude exports to India hit the lowest level of 2023 in November at 1.3 million barrels, as per recent data.

Prashant Vashisht, Senior Vice President and Co-Group Head of Corporate Ratings at ICRA, stated, "The existing discount on Russian crude stands at approximately USD 5-6 per barrel. In September, India realised total savings of approximately USD 429 million through the procurement of 5.8 million tonnes of Russian crude."

Since the invasion of Ukraine in February 2022, Russia has become the principal provider of oil to India, a development influenced by the imposition of Western sanctions on Russia.

Statistics from the Ministry of Commerce revealed that Russian supplies constituted 33.4 per cent of India's overall oil imports in the month of September.

(KNN Bureau)