New Delhi: Middle East crude oil has been a mainstay of the Indian refining sector for many decades. India imports about 85 per cent of its annual crude oil requirements. The country imported about 4.1 million barrel per day of crude oil in 2020, out of which close to 65 per cent came from the Middle East.
Freight also plays a significant role in Indian refiners’ crude purchasing, with a preference for flexible short-haul crudes. Crude shipments from the Middle East can be as quick as four to five days, while voyages from Columbia take about 30 days and from Venezuela about 40-45 days.
Indian state refiners are reportedly trying hard to further diversify crude procurement following a rift with Saudi Arabia over the kingdom’s position on production curbs to support prices.
