By Nidhi Verma
NEW DELHI (Reuters) – Russian oil intermediaries are not supplying cargo because of new U.S. sanctions targeting Russian producers, tankers and insurers, according to the finance chief of an Indian refiner. Bharat Petroleum (NSE:).
Company and other state-owned refiners – Indian Oil Corp, BPCL, Hindustan Petroleum (NSE:) and Mangalore Refinery and Petrochemicals buy Russian oil in the local market, mainly from retailers and the delay is forcing them to look at other options.
“We have not received any new offers for the March (delivery) window. Traders are asking us to wait. We are waiting to receive offers,” Vetsa Ramakrishna Gupta told Reuters on Wednesday.
“We don't expect the same number of shipments we received in December and January,” said Gupta.
Traders start delivering goods on the 15th of each month for shipment the following month.
The average refiner receives 16-17 cargoes of Russian oil per month, which covers about 35% of its needs. As other Indian refiners saw a decline in January, three short shipments are coming, and now they are facing further declines in March shipments.
To address this shortfall, Indian refiners floated oil import tenders and bought grades such as Abu Dhabi's Murban grade.
BPCL has also floated an annual tender seeking the supply of 1 million barrels of Murban every month for a year.
Gupta said his company may float an interim tender in March seeking US oil for up to six months, as higher premiums in Middle Eastern oil have made it more attractive.
India is expected to increase its purchases of American oil and gas after US President Donald Trump announced that his administration would seek to increase American oil and gas production.