Photo: BGNES, archive
India’s crude oil imports from its biggest supplier Russia fell in December to their lowest level since January 2023 as six Sokol-class oil tankers failed to deliver amid payment problems of tightening sanctions, according to data intelligence firm Kpler.
After rising to a record 2.15 million bpd in May, oil imports from Russia have fluctuated downward, experiencing a sharp decline between November and December to 1.48 million bpd last month, according to Kpler data.
Indian refiners, which were buying an average of 140,000 bpd of Sokol in 2023, were unable to receive such cargoes last month. Sakhalin-1 LLC, which extracts crude oil from Russia’s Far East, failed to open a bank account in the United Arab Emirates to allow buyers to pay in dirhams as agreed, said Victor Katona, lead crude oil analyst at Kpler, in an email on Sunday.
Of the six tankers idled off India’s coast, two have indicated they may be diverted to China, he said. Despite roadblocks, Sokol oil trade between Russia and India looks likely to continue, with three additional ship-to-ship transfers of Sokol cargoes and three new cargoes – NS Antarctic, Jaguar, Vostochny Prospect – now naming India as their final destination, Katona said.
For the whole of 2023, India’s oil imports from Russia doubled from a year to 1.79 million bpd, while those from second-biggest supplier Iraq shrank 11% to 908,000 bpd, according to data from Kpler.
Oil rose on Tuesday after Iran sent a warship into the Red Sea in response to the U.S. Navy’s sinking of three Houthi boats over the weekend, adding to regional tensions as the ships continued to avoid the key waterway.
Brent crude climbed above $78 a barrel after falling 5% over the previous three sessions, with West Texas Intermediate near $73. The US Navy said it came under fire when responding to a distress call from a ship in the Red Sea, causing the three boats to sink. In response, the Iranian destroyer Alborz entered the vital waterway on Monday, state media said.
“Ongoing geopolitical tensions are expected to support prices,” said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova Pte in Singapore, referring to the Red Sea. “Recovery in China is also a concern for oil traders in 2024.”
The whole analysis – of Bloomberg TV Bulgaria
Working on the post:
2024-01-02 17:30:00
#India #payment #problems #oil #imports #Russia #collapsing
