Latest news with #RussianCrude
Reuters
2 days ago
- Business
- Reuters
New EU Russia curbs may bolster Indian oil refiners' reliance on traders
NEW DELHI/SINGAPORE, July 21 (Reuters) - Indian private refiners that have leveraged cheap Russian crude to boost margins will be forced to find workarounds and rely more on traders to find new markets for their products after the latest round of European Union sanctions, traders and industry sources said. Russia is India's top oil supplier, and refiners such as Reliance Industries ( opens new tab and Nayara Energy have benefited in recent years from pressure on Russian crude prices from sanctions linked to its invasion of Ukraine. Many have then exported refined products to buyers in Europe. However in its 18th package of sanctions against Russia, approved on Friday, the European bloc banned imports of refined petroleum products made from Russian crude coming from third countries, excluding a handful of Western nations. It has also placed direct sanctions on Nayara Energy, a refinery backed by Russian oil major Rosneft ( opens new tab. The package will be phased in over six months. Reliance, India's largest buyer of Russian oil and refined products exporter, shipped an average of 2.83 million barrels of diesel and 1.5 million barrels of jet fuel per month to Europe in the first seven months of this year, LSEG shiptracking data showed. That roughly accounted for nearly 30% and 60% of its respective exports of the two products. Nayara Energy typically exports four million barrels or more of refined products including diesel, jet fuel, gasoline and naphtha per month, though only jet fuel typically heads to European markets, LSEG and Kpler shiptracking data showed. Under the sanctions, traders are likely to play a bigger role in placing refined products made from Russian crude, the sources said. Given the long phase-in time, they are likely to get creative with routes, they added. For diesel, traders are likely to swap Indian supplies with Middle East cargoes for export to Europe, Singapore-based traders said. They may also ship Indian cargoes to floating storage facilities in the Middle East or West Africa to be re-exported, they added. For jet fuel, Indian refiners may either divert cargoes to local markets or ship supplies to Asia, they said. Reliance and Nayara did not immediately respond to requests for comment. The changes will benefit traders by generating more trade flows, but will be costly for producers and consumers, said an Asian trader. Europe, heading into winter, may have to pay higher prices for refined fuel, he added. Nayara said in a statement on Monday it condemned the EU's "unjust and unilateral" decision to impose sanctions on the company, while India said on Friday it does not support the EU's "unilateral sanctions". Indian state refiners, which also buy Russian crude, are likely to be less affected by the sanctions as they sell most of their fuel locally and export through tenders, mostly to buyers in Asia, including Singapore, refining sources said. Indian state refiner Mangalore Refinery and Petrochemicals Ltd ( opens new tab said the company's diesel exports were unlikely to be affected by the latest sanctions. Traders in recent months sold some of MRPL's diesel parcels in the UK, according to LSEG. "We don't directly sell our diesel to the end customer. It is all picked up through a tendering process by a trader," managing director M Shyamprasad Kamath said, adding that he does not see problems in selling refined fuels due to the sanctions. Following the EU sanctions, Nayara Energy amended the terms of a naphtha tender issued on Monday to obtain payment in advance, a tender document seen by Reuters showed.
Bloomberg
09-06-2025
- Business
- Bloomberg
Japan's Taiyo Oil Imports Russian Crude on US-Sanctioned Tanker
The Japanese oil refiner Taiyo Oil Co. is taking delivery of a cargo of Russian crude on a tanker that's blacklisted by both the US Treasury and the European Union. While Japan has a waiver to buy the oil in question, the delivery — the nation's first in over two years from Russia — speaks to a growing ease among buyers around the world in dealing with Moscow as the war in Ukraine rages for a fourth year.
Arab News
29-05-2025
- Business
- Arab News
Oil Updates — prices climb $1 as US court blocks Trump tariffs
SINGAPORE: Oil prices rose by about $1 a barrel on Thursday after a US court blocked most of President Donald Trump's tariffs, while the market was watching out for potential new US sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July. Brent crude futures climbed $1.03, or 1.6 percent, to $65.93 a barrel. US West Texas Intermediate crude advanced by $1.06, or 1.7 percent, to $62.90 a barrel at 08:30 a.m. Saudi time. A US trade court on Wednesday ruled that Trump overstepped his authority by imposing across-the-board duties on imports from US trading partners. The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminum using a different statute. The ruling buoyed risk appetite across global markets which have been on edge about the impact of the levies on economic growth, but analysts said the relief may only be temporary given the Trump administration has said it will appeal. 'But for now, investors get a breather from the economic uncertainty they love to loathe,' said Matt Simpson, an analyst at City Index in Brisbane. On the oil supply front, there are concerns about potential new sanctions on Russian crude. At the same time, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, could agree on Saturday to accelerate oil production hikes in July. 'We're assuming the group will agree on another large supply increase of 411,000 barrels per day. We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share,' said ING analysts in a note. Adding to supply risks, Chevron has terminated its oil production and a number of other activities in Venezuela, after its key license was revoked by the Trump administration in March. Venezuela in April canceled cargoes scheduled to Chevron citing payment uncertainties related to US sanctions. Chevron was exporting 290,000 barrels per day (bpd) of Venezuelan oil or over a third of the country's total before that. 'From May through August, the data points to a constructive, bullish bias with liquids demand set to outpace supply,' Mukesh Sahdev, Global Head of Commodity Markets at Rystad Energy, said in a note, as he expects demand growth outpacing supply growth by 600,000 to 700,000 bpd. Later on Thursday, investors will be watching for the weekly reports from the American Petroleum Institute (API) and the Energy Information Administration, the statistical arm of the US Department of Energy. According to the market sources familiar with the API data, US crude and gasoline stocks fell last week while distillate inventories rose. Meanwhile, a wildfire in the Canadian province of Alberta has prompted the temporary shutdown of some oil and gas production which could reduce supply, and forced residents of a small town to evacuate.
CNA
29-05-2025
- Business
- CNA
Oil prices climb as US court blocks Trump tariffs
TOKYO : Oil prices rose on Thursday after a U.S. court blocked President Donald Trump's tariffs from taking effect, while the market was watching out for potential new U.S. sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July. Brent crude futures climbed 81 cents, or 1.25 per cent, to $65.71 a barrel. U.S. West Texas Intermediate crude advanced by 83 cents, or 1.34 per cent, to $62.62 a barrel at 0102 GMT. A U.S. trade court on Wednesday ruled that Trump overstepped his authority by imposing across-the-board tariffs on imports from nations that sell more to the United States than they buy. The ruling buoyed risk appetite across global markets which have been on edge about the impact of the levies on economic growth, but analysts said the relief may only be temporary given the administration has said it will appeal. "But for now, investors get a breather from the economic uncertainty they love to loathe," said Matt Simpson, an analyst at City Index in Brisbane. On the supply front, there are concerns about potential new sanctions on Russian crude. At the same time, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, could agree on Saturday to accelerate their oil production hikes in July. With Russian oil so far overall showing relative resistance to the sanctions, imposed over Moscow's war on Ukraine, "it is hard to be convinced that any new U.S. sanctions on Russia will meaningfully dent Russia's oil exports," Commonwealth Bank of Australia analyst Vivek Dhar said in a note. Adding to supply risks, Chevron has terminated its oil production and a number of other activities in Venezuela, after its key license was revoked by U.S. President Donald Trump's government in March. Venezuela in April cancelled cargoes scheduled to Chevron citing payment uncertainties related to U.S. sanctions. Chevron was exporting 290,000 barrels per day (bpd) of Venezuelan oil or over a third of the country's total before that. "From May through August, the data points to a constructive, bullish bias with liquids demand set to outpace supply," Mukesh Sahdev, Global Head of Commodity Markets at Rystad Energy, said in a note, as he expects demand growth outpacing supply growth by 0.6 million to 0.7 million bpd. Later on Thursday, investors will be watching for the weekly reports from the American Petroleum Institute (API) and the Energy Information Administration, the statistical arm of the U.S. Department of Energy. U.S. crude oil and distillate inventories likely rose last week while gasoline stockpiles likely fell, an extended Reuters poll showed on Wednesday.
Russia Today
22-05-2025
- Business
- Russia Today
India's oil imports from Russia surge
India's imports of Russian crude oil are expected to reach around 1.8 million barrels per day in May, the highest level in 10 months, Reuters has reported, citing ship-tracking data from Kpler. The surge is attributed to refiners purchasing more light grades, such as Russia's ESPO Blend. Traders predict that the strong demand for lighter Russian grades will continue until July, driven by Indian refiners who have ordered over 10 cargoes of ESPO crude for June loading, the Reuters report added. ESPO crude refers to oil from the Eastern Siberian-Pacific Ocean pipeline. The most recent purchases of Russian crude by India were made before the EU and UK imposed the latest round of sanctions targeting Moscow's so-called 'shadow fleet' of oil tankers and financial firms. Despite Western concerns, India has strengthened its economic ties with Russia and increased its imports of Russian crude oil throughout the Ukraine conflict. India's imports of Russian crude oil, which were marginally down earlier in 2025, bounced back from March onwards. The surge is attributed to lower prices, which have made it more economical for refiners. Additionally, the decreased prices have led to an increase in the availability of non-sanctioned tankers, facilitating easier transportation of oil for Indian companies. After the imposition of a round of Western sanctions on Moscow in February, New Delhi said it would continue purchasing Russian oil, provided that certain conditions were met. These included a sale price below $60 per barrel, transportation on tankers that are not subject to sanctions, and ensuring that transactions did not involve any sanctioned entities or individuals, according to the Financial Express. Russian crude accounted for over 35% of India's total oil imports in March. The surge in imports in May has helped Moscow solidify its position as a major oil supplier to Asia's third largest economy.
