Indian refineries jointly negotiate Russian oil for 2024

Indian refineries are negotiating together for the purchase of Russian oil for the next year. Suppliers predominantly use Russian insurance for crude oil priced above the $60 per barrel threshold. Currently, Russia is India's largest oil supplier. At the same time, India, the world's third-largest oil importer and consumer, is Moscow's most significant buyer of seaborne oil. While private refineries in India have signed annual contracts for Russian oil deliveries, state refineries procure their supplies through spot markets. India is also heavily dependent on producers in the Middle East and has annually renewed contracts for oil imports with the major oil producers in the region. Discussions with Middle Eastern suppliers about contract renewals for the coming year will begin in December. When asked whether Indian companies would seek better terms from the oil producers, a source stated that various agencies had revised their global oil demand estimates downward. India's Oil Minister Hardeep Singh Puri stated on Wednesday that India will continue to buy Russian oil from non-sanctioned companies because prices are favorable. Russian insurers play an increasingly significant role in facilitating oil shipments to India. By using Russian insurance, Moscow can sell oil above the $60 threshold set by the G7 countries, the European Union, and Australia, which aims to limit Russia's oil revenues following its invasion of Ukraine. Indian refineries pay for Russian oil in Emirati Dirhams and US Dollars. “Russian oil priced below $60 is paid for in dollars,” added the source. In the past, Indian refineries have also used Rupees and Chinese Yuan for some payment transactions.