Russian oil exports to India bounced back strongly in September

Shipments of Russian oil to India jumped 15% in September from a seven-month low in August, boosted by plentiful supply and price discounts, according to Kpler SAS.

Cargoes arriving from Russia amounted to 1.78 million barrels a day last month, the data intelligence firm said. The imports are likely to stay strong, according to Viktor Katona, lead crude analyst at Kpler. 

There is “plentiful room” for imports from Russia to rise as the country’s ban on diesel exports means domestic refiners will cut run rates and more crude will be available for overseas, he said.

India mainly buys the Urals grade, which is delivered at a discount of around $4 per barrel to Brent, making it more attractive than term supplies from the Middle East, Katona said. With the increasing availability of Russian crude, exporters may offer even greater discounts in future, he said.

Imports from Iraq, India’s second-largest supplier, rose 9.4% in September from a month earlier to 934,000 barrels a day, while cargoes from Saudi Arabia, the third biggest, fell 41% to 491,000 barrels a day.