Indian refiners turn back to Middle East suppliers

Indian refiners cut purchases of Russian crude for November delivery as prices rose and Middle Eastern alternatives became more competitive, Bloomberg reported, citing people familiar with the matter. Russia's share of India's crude imports fell to about 35% in September from as much as 56% in July, according to Kpler.

Russian Urals crude loaded in the Baltic is now being offered at premiums of more than $10 a barrel to Dated Brent, with cargoes once sold at steep discounts now priced close to competing Gulf grades. Sources told Bloomberg that New Delhi had not directed refiners to cut Russian imports despite a sweeping U.S. sanctions law raising the risk of punitive tariffs.

Middle Eastern shipments through the Strait of Hormuz have recovered to around 80% of prewar levels, according to Shell CEO Wael Sawan, while Saudi Arabia has cut prices on its Arab Light benchmark to compete for Asian market share. Reuters separately reported Indian buyers expect Russian supplies to fall further in October and November amid reduced Russian exports and rising Chinese demand.

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