State run refiners Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) have placed fresh January loading orders for Russian oil from non sanctioned suppliers as widening discounts make the crude more attractive, according to trade sources. The move comes despite evolving geopolitical risks and recent U.S. sanctions targeting major Russian producers.
BPCL has reportedly purchased four cargoes two each of Russian Urals and CPC Blend. Sources indicate that Urals crude was offered at a discount of $6–$7 per barrel to dated Brent, making it significantly cheaper than alternatives in the global market. IOC, India’s largest refiner, has also secured multiple sanctions-compliant Russian cargoes for January loading as part of its continued procurement strategy.
IOC Maintains Consistent Purchases; BPCL Limits Further Buying
IOC has been regularly purchasing Russian cargoes that comply with U.S. sanctions, especially after Washington imposed restrictions on top Russian producers Rosneft and Lukoil in October. BPCL, however, skipped Russian oil purchases for December-loading and, according to sources, does not plan additional January purchases as it has already secured supplies from other regions to meet refinery needs.
The Caspian Pipeline Consortium (CPC) system, from which BPCL purchased two cargoes, primarily transports oil from Kazakhstan, though Russia also contributes a portion of the supply.
Requests for comment from both IOC and BPCL remained unanswered at the time of publication.
Other Refiners Pull Back, While Nayara Energy Stays Committed
Other state run refiners including Mangalore Refinery and Petrochemicals Ltd (MRPL) and Hindustan Petroleum Corp (HPCL) along with private refiner HMEL, have halted purchases of Russian oil due to sanctions-related risks and operational challenges.
In contrast, Nayara Energy, partly owned by Russia’s Rosneft, continues to exclusively process Russian crude, maintaining its long term supply arrangements even as other refiners diversify sources.
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