Russian oil cargoes heading to other destinations pivot towards India: Report

Two Russian oil cargoes previously heading for East Asia have changed course and are now discharging in India, according to ship-tracking data. This shift comes as Indian refiners are once again engaging with Russian crude traders as supply uncertainties escalate due to the ongoing Middle East conflict. 

According to a report in Bloomberg, two tankers, Odune and Matari, are delivering a combined total of approximately 1.4 million barrels of Urals crude to Indian ports this week, after originally indicating they were bound further east.

The Odune, a Suezmax vessel carrying 730,000 barrels, arrived at Paradip port on Wednesday, though it is unclear whether the cargo has been discharged, the report added. Matari, an Aframax tanker loaded with more than 700,000 barrels, is scheduled to reach Vadinar in western India on Thursday. Both vessels had initially signalled East Asian destinations before altering their routes towards India.

Previously, Indian refiners had reduced their purchases of Russian oil to avoid complicating trade relations with Washington, which resulted in Moscow seeking alternative buyers, especially in China. Current regional uncertainties, including the war in the Middle East and the near closure of the Strait of Hormuz – additionally, Trump administration’s 30-day waiver to India to procure Russian oil – are now driving Indian processors to reconsider Russian supplies. 

Urals crude, traditionally loaded in the Baltic and Black Seas, was once highly popular among Indian refiners. However, due to pressure from the US urging New Delhi to curtail purchases, flows had fallen sharply earlier this year. 

Additional changes in shipping destinations may follow, as illustrated by the Indri, a Suezmax vessel in the Arabian Sea. While initially on course for Singapore, Indri turned sharply north this week and is now en route to India with a cargo of about 730,000 barrels of Urals crude.

Odune, Matari and Indri were all sanctioned by the UK and the European Union last year.