Reliance Industries Limited (RIL), one of the largest companies in India and the operator of the biggest refining complex in the world at Jamnagar, has cut down its imports of Russian crude oil in November. A report from Reuters indicates that the company’s intake from Russia dropped by nearly 17% compared to the previous month, reaching about 459,000 barrels per day (bpd). This is the lowest amount of Russian oil Reliance has purchased in the last nine months.
This decrease in imports follows the end of Reliance’s long-term crude supply agreement with the Russian oil company Rosneft. According to information from Reuters, Reliance stopped placing new orders after the contract expired and loaded its last shipment under this agreement on November 12. Previously, Reliance had been importing close to 500,000 bpd of Russian crude each year, making Russia an important supplier for the company in recent years.
Change in sourcing strategy
With the reduction in Russian crude, Reliance adjusted its sourcing strategy in November by increasing its reliance on suppliers from West Asia. Crude imports from this region rose by about 41% compared to October, reaching nearly 681,000 bpd. Countries like Iraq, Kuwait, and Saudi Arabia saw significant increases in their supply to the Indian refiner, showing a strategic shift as the long-term Russian supply ended.
This change demonstrates how refiners are adapting to new supply contracts and geopolitical factors while ensuring a steady supply of feedstock for large refining operations like Jamnagar.
Trends among global suppliers
In contrast to the rise in imports from West Asia, crude sourcing from Latin America fell sharply in November, decreasing by over 30% compared to October. Shipments from Africa were minimal, indicating little reliance on that continent during the month.
North American crude imports showed mixed trends. While supplies from the United States varied, Canada remained a consistent and reliable supplier for Indian refiners, including Reliance. These changes highlight the flexible and varied procurement strategies of Indian refiners in response to shifting global oil trade patterns.
India’s overall Russian crude imports remain strong
Even though Reliance reduced its Russian imports, India’s total crude oil imports from Russia increased in November. Data showed that India imported around 1.77 million bpd of Russian crude during the month, a 3.4% rise from October. Russia continued to be India’s largest crude oil supplier, making up more than one-third of the country’s total imports.
According to Reuters, ongoing purchases by public sector oil companies and other private refiners helped balance the reduction in volumes from Reliance. This collective buying ensured that India’s overall dependence on Russian crude stayed high, despite individual refiners changing their sourcing strategies.
West Asia remains key to India’s import strategy
Overall, West Asia continued to play a crucial role in India’s crude sourcing, supplying more than 2.27 million bpd in November. Iraq and Saudi Arabia were the main contributors, and imports from the UAE and Kuwait also increased compared to the previous month.
The strong supply from West Asia, along with selective imports from Russia, reflects India’s balanced approach to energy security. By maintaining diverse sourcing options, Indian refiners aim to manage price fluctuations, ensure stable supply, and effectively navigate changing global energy dynamics.
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