Indian refiners imported $720 million, or around 5,800 crores, worth of crude oil from Russia in the first two weeks of November, despite the G7 countries’ plans to control the price of Russian crude oil being unknown. From November 1 to November 15, the inbound shipment from Russia was the fourth-highest in the previous nine months. For instance, data gathered by Finland-registered Centre for Research on Energy and Clean Air (CREA) showed that India imported oil worth a record $1.35 billion during the first fortnight of September 2022, an all-time high for a fortnight.
The proportion of Russian crude oil imported by India increased from 1% in February 2022 to 21% in October. It is anticipated to be in a similar range in November, albeit a touch lower, according to sources. However, due to the price cap and upcoming sanctions, which are set to take effect on December 5 and are anticipated to hamper seaborne delivery, Indian refiners are being cautious while making reservations for supplies from Russia. Taking advantage of the January 19 unloading deadline, certain oil marketing firms (OMCs) are still ordering crude from Russia.
According to a November 10 report from S&P Global Commodity Insights, the U.S. reaffirmed on October 31 that any cargo of Russian origin loaded before December 5 and discharged by January 19 is exempt from the price cap. By allowing Russian crude to be discharged before January 19, the oil markets are given some leeway to adjust to the new regulations.”However, insurance and shipping service providers still want to know when and how the sales price for Russian cargo will be documented. It is yet unknown how disagreements about pricing and where the goods originated, the statement continued.
With S&P Global data revealing that they hoisted 55% of Russian crude shipments from the Baltic and Black Sea in September, shipowners with headquarters in the EU and G7 hold a sizable market share in the Russian tanker trade. According to G7 estimates, shipping insurers in G7 nations provide coverage for nearly 95% of the world’s fleet of oil tankers.
