Indian refiners look to diversify crude sources

The country is trying to reduce dependence on Russian barrels amid a narrowing of the gap between them and Middle Eastern grades

Indian Petroleum Minister Hardeep Singh Puri set the tone for India’s oil buying strategy at the start of the year. "India has started to diversify its crude oil sources and is not dependent on Russian crude," he said at a press conference in New Delhi. The reason is largely driven by price as Indian companies no longer enjoy the steep discounts that had been offered, which reached more than $20/b to average Brent prices at some points. The gap is now barely a few dollars. Indeed, the decreasing price differential between Russian and Middle Eastern crude grades, long-term contract obligations with Middle East sellers, payment issues, and the price-cap compulsion on Russian purchases are forc