India is aggressively buying Russian crude oil amidst supply disruptions from Strait of Hormuz caused due to the ongoing US-Iran war and Middle East conflict. In fact, India is buying such huge quantities of Russian crude, that tankers headed to China are making a U-turn to head to India!According to a Bloomberg report, a tanker carrying Russian crude that was initially headed to China has reversed course in the South China Sea and is now speeding toward India, as India steps up purchases from Moscow. The report said that many more oil cargoes, initially headed for China, may make their way to other countries.
India Grabs More Russian Crude, China Bound Oil Diverted
Vessel-tracking data suggests that the Aqua Titan is expected to dock at New Mangalore on March 21, transporting a cargo of Urals crude loaded at a Baltic Sea port in late January. The Aframax tanker had earlier indicated Rizhao in China as its destination, but altered its route in mid-March while passing through Southeast Asian waters, shortly after the US waiver to India to temporarily ramp up imports of Russian oil, the Bloomberg report said. India on its part has said that it doesn’t need permission to decide its energy security needs and has never stopped buying Russian crude.
Data from Vortexa Ltd. indicates that at least seven vessels transporting Russian crude have altered their routes mid-journey, changing course from China to India. At present, all major Indian refiners are actively sourcing Russian oil.Indian refiners have purchased nearly 30 million barrels of Russian crude within a week, as the country seeks to offset supply disruptions from the Middle East.Also Read | India’s Goldilocks under threat? How US-Iran war, crude oil above $100 may deal a blow to growth story – explainedFollowing these developments, a growing number of countries have been permitted to restart imports from Russia. This shift could lead to additional cargoes being redirected away from China, which had emerged as a key buyer of last resort for Moscow in recent months after India curtailed its purchases, the report said.
As more buyers – including Japan and South Korea – re-enter the market, prices are expected to move upward.In a separate instance, the Suezmax tanker Zouzou N. has indicated Sikka in India as its next port of call, with an expected arrival around March 25, according to shipping data. The vessel is carrying Kazakhstan’s CPC Blend crude, as per Kpler. It had initially departed from Novorossiysk on Russia’s Black Sea and was headed toward waters near Rizhao before reversing direction in early March and proceeding toward India.
