India’s private refiners cut Russian crude imports as discounts narrow

India’s private refiners, including Reliance Industries Limited and Rosneft-backed Nayara Energy, have reduced their imports of Russian crude by 18% month-on-month in November 2024, as the discount on Russian oil has narrowed.

According to energy cargo tracking firm Vortexa, private refiners imported a total of 726,585 barrels per day (bpd) from Russia in November, down from 885,983 bpd in October and 761,941 bpd in September.

Despite the reduction in Russian crude imports, India’s private refiners saw a 5% month-on-month increase in exports, although the destination has shifted from Europe to Asia.

In November 2024, private refiners exported 270,300.93 bpd to Asia, followed by 223,363.93 bpd to Africa, 138,121.76 bpd to Oceania, and 129,499.30 bpd to Europe. Once a dominant export destination for both private and state-owned Indian refineries, Europe now ranks fourth in export volumes.

Despite the reduction in imports, Russia continues to be India’s largest crude supplier. Overall, Russian crude still accounts for 38% of India’s total crude imports, slightly down from 39% in October. Iraq’s share of Indian crude imports fell to 17% in November, down from 20% the previous month.

The market shares of other major suppliers, including Saudi Arabia (13%), the UAE (9%), and the US (5%), remained relatively stable, with only minor changes month-on-month. The surge in Russian crude imports by Indian refiners began after the Russia-Ukraine war when Russian oil was offered at significant discounts.

Overall, India’s total crude imports were flat in November, with domestic demand increasing seasonally. However, export demand weakened, primarily due to unfavourable diesel export margins to Europe, which capped refinery runs.

Meanwhile, India’s domestic consumption of petroleum products increased to 137.6 million tonnes in April-October, driven by growth in demand for diesel, aviation turbine fuel, and liquefied petroleum gas.