Dependence on cheap Russian crude oil will fall sharply: Hardeep Puri

India’s splurge on cheap Russian crude may be over, as New Delhi’s traditional suppliers in the West Asia step back in with attractive conditions.

“Our dependence on Russian oil is going to decrease sharply,” Oil Minister Hardeep Puri said in an interview. “The cost viability from the Gulf is much more attractive now.”

India’s consumption of Russian crude has soared since President Vladimir Putin’s invasion of Ukraine in February last year, ousting Saudi Arabia and Iraq from the top spots. From negligible levels, it soared to account for nearly half of supplies in May. However, rising prices have squeezed the discount on Russian crude and limited the attractiveness of those spot purchases, making other sources, some with term contracts, appealing once again. Moscow has also said this week it plans to extend export curbs. 

In August, imports from Russia fell for the third consecutive month to 1.57 million barrels a day, according to data-intelligence firm Kpler, down 24 per cent on the month and at the lowest since January — though Russia remains India’s top supplier. “I am very clear. We are in the market today, and we will buy from whomever,” Puri said.