Indian refineries have signed contracts to purchase around 60 million barrels of Russian oil for delivery in April, following the easing of American restrictions. The order volume matches that of March but is double that of February. For the first time since the onset of Russia’s full-scale war against Ukraine, these shipments are being secured with a premium of $5–15 per barrel compared to Brent crude.
This is reported by Business • Media
The Role of the Middle Eastern Crisis in the Increase in Demand for Russian Oil
The rise in demand from India coincided with the deepening conflict in the Middle East, which has caused disruptions in the Strait of Hormuz, through which a significant portion of global oil exports passes. These disruptions have led to a temporary easing of sanctions against Russia. According to Indian government officials, the preferential import regime will remain in place as long as the risk of supply disruptions from the region persists.
Diversification of Imports and Increase in Russia’s Revenues
Companies Mangalore Refinery & Petrochemicals Ltd. and Hindustan Mittal Energy Ltd. have returned to purchasing Russian oil after refraining from cooperation since December. At the same time, Indian refiners continue to seek alternative sources of raw materials: in April, Venezuelan oil imports are expected to reach 8 million barrels – the highest level since October 2020.
Due to the impact of Middle Eastern events, Russia’s revenues from oil exports have sharply increased, reaching their highest level since the start of its large-scale invasion of Ukraine in 2022. Over the past three weeks, the value of Russian oil exports has doubled: while daily revenues averaged $135 million in January, they rose to $270 million per day in March.
“Despite the Russian leadership acknowledging the temporary nature of such windfall profits, they significantly bolster the country’s military budget.”