MOSCOW (MRC) -- India is taking most of Russia’s Urals crude oil loading in December as it remains top buyer for a second month in a row, according to traders and Refinitiv data, said Euronews.
Volumes and India’s share of the exports are expected to rise month on month despite a shorter loading plan for Russia’s Western ports, traders said. In November India accounted for about 53% of the total tanker shipments of the grade – the highest level on the record.
India’s share may exceed 70% of total loadings in December, according to market participants. The EU, G7 nations and Australia introduced the $60 per barrel price caps on Russian oil, effective from Dec. 5, on top of the EU’s embargo on imports of Russian crude by sea.
India is buying the Urals crude at deeper discounts this month well below USD60, four market sources said. Russian Urals used to be one of Europe’s favourite grades due to short trading cycle, cheap shipping and attractive refinery yields. The blend was purchased on a regular basis by dozens of countries across the globe.
We remind, India is considering building several refineries instead of a single mega plant planned with Saudi Aramco and Abu Dhabi National Oil Company (ADNOC), due to challenges in acquiring land, three sources familiar with the matter said. Hurdles in land purchases are one of the key reasons for sluggish infrastructure development in Asia's third-largest economy. Aramco and ADNOC joined a consortium of Indian state-run firms in 2018 to set up a 1.2 MMbpd coastal refinery and petrochemical plant in western Maharashtra, seeking a reliable outlet for their oil.