Two Indian refiners bought a total of 5 million barrels of crude oil from the United States, Iraq, and the UAE on the spot market as they seek alternatives to Russian crude.
Reuters reported, citing unnamed industry sources, that Hindustan Petroleum Corp. had bought 2 million barrels of West Texas Intermediate and 2 million barrels of Murban crude for delivery in January.
The other refiner, Mangalore Refinery and Petrochemicals, bought 1 million barrels of Basra Medium, also to be delivered in January, the Reuters sources said.
The search for alternative oil supplies follows the Trump administration’s decision last month to sanction Rosneft and Lukoil, which together account for half of Russia’s oil exports and a significant portion of Indian imports from the country.
The sanctions ignited a rush to secure supplies ahead of the entry into effect of the sanctions, on November 21, while oil buyers look for loopholes to keep their access to discounted Russian crude.
Meanwhile, Bloomberg reported an unusual move by two tankers, both sanctioned by the European Union and the UK, which performed a ship-to-ship transfer off the Indian coast last week. One of the tankers, the Ailana, had been idling for a couple of weeks prior to the transfer, Bloomberg wrote, noting that after the transfer, the receiving tanker, Fortis, continued to the Indian port of Kochi, while the Ailana set off for Russia.
In separate but related news, India’s president, Droupadi Murmu, said Indian oil and gas companies were seeking long-term relationships with Angolan energy entities, interested in investing both in energy commodities and in critical minerals.
“Angola’s role in India’s energy security is very important. India is a major buyer of Angola’s oil and gas. Our oil and gas companies are desirous of entering into a long-term purchase contract with Angola,” Murmu said during a state visit to the West African country.
By Irina Slav for Oilprice.com
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