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Business Standard
10 hours ago
- Business
- Business Standard
Indian private refiners dominate buying of Russian flagship oil grade
Reliance Industries Ltd. and Nayara Energy Ltd. alone took 45 per cent of Russia's shipments of the medium-sour variety Bloomberg By Rakesh Sharma and Weilun Soon India has taken 80 per cent of Russian seaborne exports of its flagship oil grade so far this year, with the country's only two private refineries scooping up a growing portion of the cut-price crude. The South Asian nation has bought 231 million barrels of Urals in the year through June 24, according to data analytics provider Kpler. Reliance Industries Ltd. and Nayara Energy Ltd. alone took 45 per cent of Russia's shipments of the medium-sour variety. India's increasing dominance as a buyer of Urals — it took 74 per cent of exports of the grade in 2024 — highlights the country's dependence on Russian energy, as well as its importance as a revenue generator for the Kremlin. Chinese independent refineries, known as teapots, have traditionally been enthusiastic buyers of Russian oil, but they're getting squeezed by a stricter tax regime and weak local demand this year. The portion of Urals being purchased by the two private Indian refiners has been rising steadily over the last few years, and has jumped sharply so far in 2025. Reliance — which has taken 77 million barrels of the grade this year — is now the world's single biggest buyer of Urals. The refiner, owned by Indian tycoon Mukesh Ambani, entered into a 10-year agreement with Russia to buy as much as 500,000 barrels a day of oil from January. Urals now makes up 36 per cent of all of Reliance's crude purchases, up from 10 per cent in 2022, according to Kpler. The grade accounts for a whopping 72 per cent of Nayara's oil buying, compared with 27 per cent three years ago. India's major state-owned refiners — Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp Ltd. — haven't entered into any term deals with Russia and are more constrained in the currencies they can use to buy their crude. The appetite of Reliance and Nayara for Russian oil has also squeezed supplies of Urals and narrowed the spot market discounts to Dated Brent for India's state-owned refiners to less than $2 a barrel from $4 in the second quarter of last year, according to people involved in the trade who asked not to be named because the information isn't public. Hindustan Petroleum is pursuing a more diversified buying strategy for 2025, bringing in barrels from places like Gabon and the Republic of the Congo, said Yan Rong Fong, an oil market analyst at Kpler.
Yahoo
15-04-2025
- Business
- Yahoo
US tells Singapore banks, shippers to expect more Iran pressure
By: Weilun Soon (Bloomberg) — Singapore's financial and maritime sectors should expect the Trump administration to ramp up pressure on Iran's oil industry and on Chinese buyers of the country's crude, US Treasury officials told bankers and shipping executives during a visit to the city-state late last week. In the meetings with company executives and banks, Treasury officials emphasised that Washington would not be easing sanctions on Tehran, according to people present at the discussions or directly briefed by their companies. They asked not to be named as the exchanges are private. Instead, officials highlighted growing US attention on smaller, privately run refiners in China's eastern Shandong province, key purchasers of Iran's oil. They warned more penalties could be added, the people said. Enforcement remains a major challenge for Washington in a region where few countries recognise unilateral US sanctions — but large financial institutions and any major shipping player will be eager to avoid getting tangled in secondary US sanctions. Last week's discussions come after a cascade of US sanctions on vessels and trading companies working with Tehran. Last month saw the first move to sanction a Chinese private refiner. Shandong Shouguang Luqing Petrochemical Co., Ltd. bought Iranian oil valued at about $500 million, the Treasury Department said in a statement at the time. They also come just as the US and Iran restart negotiations over Tehran's nuclear program. White House and Iranian officials have said the indirect talks at the weekend were 'constructive', though the US side has also described the issues at stake as 'very complicated.' US officials have previously visited Singapore, Asia's oil trading hub, and neighbour Malaysia in an effort to bolster US sanctions on Iran and its curbs on Russia's ability to keep funding its war in Ukraine. This latest visit also included a stop in Hong Kong, the people said. The US Embassy in Singapore did not immediately respond to an email seeking comment. The Trump administration has repeatedly said it wants to exert 'maximum pressure' on Iran and to tighten up enforcement, seeking to force Tehran's government to abandon uranium enrichment and cut off aid for proxy militias. More stories like this are available on ©2025 Bloomberg L.P.
Yahoo
14-03-2025
- Business
- Yahoo
Singapore shipping firm hit by US sanctions over Iran oil links
By Serene Cheong and Weilun Soon (Bloomberg) – A Singapore-based company has been slapped with US sanctions for links to the Iranian oil trade, becoming the first in the city-state to be penalised for assisting with oil transfers at sea. Shipload Maritime was sanctioned because it 'knowingly engaged in a significant transaction for the transport of petroleum or petroleum products from Iran,' according to a statement from the US Department of State on March 13. The punishment relates to an ship-to-ship transfer in December near Indonesia. Calls to Shipload Maritime on Friday went unanswered. The Trump administration has vowed 'maximum pressure' on Iran to disrupt the flow of its oil, which the White House says generates revenue that supports Tehran-backed militia groups such as Hamas. Rounds of US sanctions on the OPEC producer has caused logistical challenges and slowed exports to China, forcing traders to engage in risky efforts to circumvent the measures. Shipload Maritime was sanctioned for using the tug boat Malili to facilitate the STS transfer between Sobar, an Iranian-flagged tanker, and Star Forest on Dec. 25 near Nipa in Indonesia, according to the statement. The Singapore-based company is the commercial manager and operator of Malili, it said. The US also targeted PT Bintang Samudra Utama and PT Gianira Adhinusa Senatama for using tug boats related to the Sobar-Star Forest transfer. Tug boats are small and powerful vessels that help safely guide bigger ships with tight manoeuvres near ports, or stabilise them during STS operations. The region off eastern Malaysia is home to the world's biggest and busiest hub for the movement of Iranian oil from one tanker to another. Shipload Maritime provides STS transfer support to oil majors in and around Singapore, as well as in Japan, according to shipping executives familiar with its operations. The company is based in Golden Mile Tower, a mixed-used commercial and residential building that houses many small businesses. It's not the first time a Singapore-based company has been hit with US sanctions related to the Iranian petroleum trade. Asia Fuel and Unicious Energy were penalised in 2023 for their roles in facilitating Tehran-related shipments and payments. (Removes AI summary for incorrect timeline.) More stories like this are available on ©2025 Bloomberg L.P.
