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Gulf Suppliers Cut Crude Sales to Russian-Backed Indian Refiner

2Sep

By Newscript News NetworkNo Comments

Oil & Gas Industry

Gulf Suppliers Cut Crude Sales to Russian-Backed Indian Refiner

India’s Nayara Energy has cut refinery operations to 70-80% capacity after Saudi Aramco and Iraq’s state oil company SOMO suspended crude supplies following European Union sanctions targeting the Russian-backed facility. The 400,000 barrel-per-day Vadinar refinery, majority-owned by Rosneft, has lost its traditional 3 million barrels monthly from Gulf suppliers and now relies entirely on Russian crude. The supply halt follows EU sanctions imposed in July as part of the bloc’s 18th sanctions package against Russian energy assets. Saudi Aramco and SOMO suspended deliveries to avoid sanctions exposure, severing established commercial relationships with one of India’s largest private refiners. The final Saudi shipment of Arab Light crude arrived July 18 aboard the VLCC Georgios, while th...

Indian Refiners Resume Russian Oil Purchases despite US Tariff Pressure

India’s state-owned refiners have resumed Russian crude purchases for September delivery, prioritising commercial benefits over mounting diplomatic pressure from Washington. Indian Oil Corporation and Bharat Petroleum Corporation secured Russian Urals crude at $3-per-barrel discounts for September and October shipments. The companies had paused purchases in July when price differentials narrowed but recommenced buying as commercial terms improved. The procurement restart occurs despite US President Donald Trump’s 25% additional tariff on Indian goods, imposed August 27 to penalise India’s continued energy trade with Russia. The levy specifically targets Delhi’s Russian oil imports, which have provided India with $12.6 billion in savings over 39 months. IOC has expanded its Russian...

Indian Oil balances volatile margins with LNG hedges and Russian barrels

Indian Oil Corporation (IOC), India’s largest refiner, saw profit pressure in the June quarter as marketing margins fluctuated and inventory losses weighed. Revenues held near ₹2.22 trillion, but the numbers underlined how exposed state refiners remain to crack spreads and regulatory discipline. Operationally, IOC is leaning on term LNG contracts indexed to Henry Hub to hedge against volatile spot prices. Earlier this year it signed a five-year supply arrangement with Trafigura, ensuring baseload gas for its captive power and city-gas distribution. The company has also resumed purchases of discounted Russian oil as arbitrage widened, trimming feedstock costs at coastal refineries. Executives argue flexibility is key. “Securing a diverse crude basket is central to operational stabilit...