Indian refiners are set to skip purchases of Russia ESPO crude oil this month due to higher freight rates, turning to Africa and the Middle East instead, industry sources said.
India, which rarely used to buy Russian oil, has emerged as Moscow’s second biggest oil customer after China since Moscow’s invasion of Ukraine in late February.
Refiners in India have been snapping up nearly all grades of Russian crude, taking advantage of discounts after some entities in the West halted purchases.
However, higher prices are set to cool off Indian demand, channeling supplies to China.
