HomeLatest NewsIndia said in September it would skip buying Russian ESPO crude as...

India said in September it would skip buying Russian ESPO crude as freight costs rose

India, which rarely buys Russian oil, has emerged as Moscow’s biggest oil customer after China since Russia’s invasion of Ukraine in late February.

India, which rarely buys Russian oil, has emerged as Moscow’s biggest oil customer after China since Russia’s invasion of Ukraine in late February.

Indian refiners are skipping purchases of Russian ESPO crude this month due to high freight rates, instead turning to Africa and the Middle East, industry sources said.

India, which rarely buys Russian oil, has emerged as Moscow’s biggest oil customer after China since Russia’s invasion of Ukraine in late February.

Refiners in India have slashed prices of almost all grades of Russian crude, taking advantage of discounts after some Western firms stopped buying due to sanctions. However, higher prices have been set to dampen Indian demand, with supplies going to China.

“On a net back basis after factoring in freight, ESPO’s landed costs are going to be $5-$7 per barrel more expensive than similar grades in other countries such as UAE’s Murban,” said an Indian industry source familiar with the matter. , adding that Russian oil was cheaper before.

Instead of ESPO, Indian companies are buying other grades such as those from West Africa that yield better, he said.

The price gap between Brent and the Dubai benchmark has also narrowed.

Indian companies are buying other grades such as those from West Africa which yield better

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