India has ramped up purchases of crude from Russia’s far east, a grade that’s typically favored by Chinese oil refiners.
Four vessels hauling Russian ESPO oil are making their way to India, with two tankers heading for Paradip port on the east coast, where a refinery operated by Indian Oil Corp. is located, according to shipbrokers and data compiled by Bloomberg.
That compares with three vessels in June and one in April, said Emma Li, an analyst at Vortexa in Singapore.
State-owned Indian Oil didn’t immediately respond to a request for comment.
The trade is typically not attractive to Indian buyers due to the long distance from the Russian loading port of Kozmino and because ESPO crude cargoes are usually transported in aframax vessels, which carry smaller volumes. However, the cheaper price compared with other grades from the Persian Gulf and West Africa are likely to have prompted the buying, according to traders.
Cargoes of ESPO can be shipped to China in around five days, and the nation’s refiners have been eagerly snapping up the cheap Russian barrels, which have displaced flows from other suppliers such as West Africa and Brazil.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.