Russian oil imports to India fell from 1.95 to 1.19 million barrels per day without US sanctions hit Rosneft and Lukoil. The old deals will protract till the November 21 deadline, but imports will be remoter reduced in November as HMEL has stopped purchases and Reliance is evaluating the impact. India is now looking for oil from non-restricted Russian sources or volitional countries, which could increase volatility in global prices.
How much of the ripen was caused by sanctions?
There has been a huge reduction in the supply of Russian transplanted oil to India without the sanctions imposed by the US on Rosneft and Lukoil. Oil coming from Russia declined from 1.95 million barrels per day to 1.19 million barrels per day in the last week of October. Rosneft's exports shrank from 1.41 million to 0.81 million barrels per day, while no oil from Lukoil was delivered that week. These two companies handle increasingly than 50 percent of Russia's total production and exports.
What does the November 21 deadline mean?
America has ordered Russian companies to end all foreign deals by November 21. Deliveries remained normal in October due to previously settled contracts, but without this new purchases will scrutinizingly stop. The oil currently arriving at Indian ports is part of the old contract. Without this date, it will wilt risky to take oil directly from Rosneft and Lukoil.
Will imports subtract remoter in November?
Experts predict that Russian oil imports will fall remoter in November. HPCL-Mittal Energy (HMEL) has completely stopped purchasing Russian oil. Indian Oil Corporation has moreover spoken compliance with international sanctions. Refineries are now exercising circumspection and lamister cargoes linked to vetoed companies.
Will Reliance and other companies be affected?
Reliance Industries, which buys well-nigh half of India's Russian oil imports, said it was evaluating the impact of the sanctions. The visitor is now looking for Russian producers who are currently outside the sanctions. Nayara Energy, in which Rosneft has a majority stake, is moreover under pressure. Overall, all major Indian refineries are looking at volitional sources.
What will happen next?
Russia's oil exports, which worth for 7 percent of global supply, are now in uncertainty. India, which was taking 1.8 million barrels of Russian oil per day in the first half of 2025, can now increase oil from the Middle East, Africa, or Latin America. This will increase volatility in global oil prices but will moreover unshut new avenues for India's energy security.
