Oil PSUs buy more Russian crude despite G7 price cap
Russian oil by a quarter in September over the previous month, helping boost India’s imports from Russia by nearly a tenth and providing further evidence that the G7 price cap wasn’t proving much of a hindrance in oil imports.
Russia supplied 1.57 million barrels per day (mbd) in September, up from 1.44 mbd in August, and increased its share in Indian crude imports to 38% from 33% a month earlier, according to energy cargo tracker Vortexa. This is, however, lower than the 1.9 mbd that Russia supplied in July, which gave it a 42% share in Indian imports.
Imports in September increased as lower intake by China made more Russian supplies available to India, said Serena Huang, an analyst at Vortexa, adding that the reduction in exports by Saudi Arabia also boosted Indian demand for Russian barrels.
China is the biggest buyer of Russian crude. The volume of oil it receives by ship from Russia fell 13% to 1.2 mbd in September over the previous month.
Europe imported 40% more at 0.4 mbd.
All key Russian crude grades, including the flagship Urals, are trading above $80 per barrel these days, higher than the G7 cap of $60 per barrel.
The G7 sanctions bar the use of western shipping, finance, and insurance for Russian oil sold above the cap. “The price cap has not impacted India's imports of Russian crude much potentially because vessel owners carrying Russian crude sold above the price cap may have alternative insurance,” said Huang.
Private sector refiners’ imports of Russian oil dropped 13% sequentially in September to 0.5 mbd. However, their import of refined products from Russia rose 23% to 172,000 barrels per day.
State refiners’ imports of refined products remained little changed at 33,000 barrels per day.
