Reliance Industries (RIL), one of India’s largest conglomerates and the operator of the world’s largest refining complex at Jamnagar, reduced its imports of Russian crude oil by 16.9% month-on-month in November to about 459,000 barrels per day (bpd), as per a report from Reuters. This, as per Reuters, is the lowest intake from Russia in nine months.
The decline follows the expiry of Reliance’s long-term crude purchase agreement with Russian oil major Rosneft, according to Reuters. The company had stopped placing fresh orders and loaded its final cargo under the deal on November 12, it had disclosed earlier. Under the agreement, Reliance had been buying close to 500,000 bpd of Russian crude annually.
Shift in sourcing mix
As Russian volumes tapered, Reliance leaned on West Asian suppliers. Crude imports from the region rose 41% month-on-month in November to around 681,000 bpd. Supplies from Iraq, Kuwait and Saudi Arabia saw notable increases, reflecting refiners’ recalibration of sourcing strategies as long-term Russian flows ended.
Imports from Latin America, too, fell sharply, down over 30% from October, while shipments from Africa were negligible during the month. North American volumes were mixed, with Canada remaining a steady supplier even as US imports fluctuated.
Overall, Indian oil imports from Russia edge higher
At a broader level, India’s crude oil imports from Russia continued to edge higher. The country imported about 1.77 million bpd of Russian oil in November, up 3.4% from October, data showed. Russia remained India’s single-largest crude supplier, accounting for more than a third of total imports during the month.
Reuters report indicated that despite refiners like Reliance trimming volumes, sustained buying by PSU oil companies and private refiners helped keep India’s overall Russian intake elevated.
Sourcing from West Asia higher
Meanwhile, West Asia continues to be one of India’s dominant sourcing regions, supplying over 2.27 million bpd in November. Iraq and Saudi Arabia continued to anchor India’s import basket, while shipments from the UAE and Kuwait also rose month-on-month.