HomeBusinessIndia said to skip buying Russia's ESPO crude in September as freight...

India said to skip buying Russia’s ESPO crude in September as freight costs jump


India, which not often used to purchase Russian oil, has emerged as Moscow’s largest oil buyer after China since Russia’s invasion of Ukraine in late February.

India, which not often used to purchase Russian oil, has emerged as Moscow’s largest oil buyer after China since Russia’s invasion of Ukraine in late February.

Indian refiners are set to skip purchases of Russian ESPO crude oil this month as a result of larger freight charges, turning to Africa and the Center East as an alternative, trade sources stated.

India, which not often used to purchase Russian oil, has emerged as Moscow’s largest oil buyer after China since Russia’s invasion of Ukraine in late February.

Refiners in India have been snapping up virtually all grades of Russian crude, profiting from reductions after sanctions led some entities within the West to halt purchases. Nonetheless, larger costs are set to chill Indian demand, channeling provides to China.

“On internet again foundation after factoring within the freight, the landed value of ESPO is popping out to be $5-$7 a barrel costlier compared to related grades from different international locations similar to UAE’s Murban,” stated an Indian trade supply conversant in the matter, including that Russian oil had beforehand been cheaper.

As an alternative of ESPO, Indian corporations are shopping for different grades similar to these from West Africa that give higher yields, he stated.

The value hole between Brent and Dubai benchmarks has additionally narrowed.

Indian corporations are shopping for different grades similar to these from West Africa that give higher yields



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