Crude costs are biting Indian refiners' pockets
New Delhi: Indian refiners are grappling with rising crude costs that are outpacing global benchmarks. Tensions in key shipping lanes and supply constraints have driven premiums higher for Gulf and West African barrels. Brent futures have surged nearly $10 a barrel to trade above $91, while discounts on Russian crude have largely vanished and Venezuelan discounts have narrowed.
Gulf suppliers are demanding $3-4 over the regional Dubai-Oman benchmark, pushing Indian refiners towards spot markets for Gulf crude where premiums are being charged. The effective cost of Gulf crude is now about $10 above Brent for Indian refiners. Term-deal supplies from Saudi Aramco have also shrunk due to shipping disruptions, leaving Indian refiners increasingly reliant on spot market purchases from the Gulf region.
West African crude, another major source, is seeing wider premiums, with some executives deeming it increasingly unviable. Indian refiners are exploring alternative sources like the US, Brazil, and Guyana to mitigate the impact of the tightening crude market.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
