Russian Oil Cargoes En Route To India Amid Israel-US-Iran War

Israel-US-Iran War: In a move to mitigate the impact of Middle East supply chain disruptions, two Russian oil cargoes have been switched their destination from East Asia to India, according to data compiled by energy intelligence firms.

These tankers carrying nearly 1.4 million barrels of Urals oil are expected to arrive at ports in the South Asian nation this week, as per data from both Kpler and Vortexa.

Urals, which is considered Russia's primary export crude blend, was earlier a popular choice for Indian refiners, however, flows declined after the United States induced pressure to halt purchases.

The Odune, a Suezmax carrying 730,000 barrels, arrived at Paradip on India’s east coast on Wednesday, data and port agent’s reports show, but it remains uncertain whether it has discharged yet. Meanwhile, Matari, an Aframax with more than 7,00,000 barrels, will reach Vadinar in western India on Thursday.

Also Read: Morgan Stanley Flags Inflation Jump If US-Iran War Lasts Over Weeks

While Indian refiners had cut down on their Russian oil purchases in recent weeks in the backdrop of trade having inked an interim trade pact with US, however, post the blocking of Strait of Hormuz and tensions in Middle East processors in India are looking at Russian oil barrels. 

Indri, a Suezmax in the Arabian Sea that’s signalling it’s heading to Singapore, made a sharp turn north this week toward India with about 7,30,000 barrels of Urals on board, ship-tracking data show.

All three vessels — Odune, Matari and Indri — were sanctioned by the UK and the European Union last year.

Meanwhile, Russia's Deputy PM Alexander Novak, said Kremlin is willing to sell oil to India if wants it.

“We are always ready. Our oil is in demand. If they buy it, we'll sell it,” he said.  

Earlier, Foreign Secretary Vikram Misri had noted that 'national interest is the guiding factor' when it comes the South Asian nation's Russian oil purchases.