India cuts Dubai-Oman weight in crude basket as oil sourcing shifts
New Delhi: India has flipped the composition of its official crude basket after disruptions to West Asian oil supplies during the Iran conflict reshaped its
New Delhi: India has flipped the composition of its official crude basket after disruptions to West Asian oil supplies during the Iran conflict reshaped its crude import mix, giving Brent-linked crude a higher weight than Dubai-Oman sour crude for the first time in the available PPAC data series since 2001. The share of Dubai-Oman sour crude in the Indian crude basket has been cut to 20.60%, the lowest since comparable data became available in 2001, according to data from the Petroleum Planning and Analysis Cell (PPAC). Brent-linked sweet crude now accounts for 79.40% of the basket, up from 71.02% in June, 70% in May and 61.02% in April, according to PPAC data. West Asia's share in India's crude imports fell to around 22% in June, according to Kpler data, down from 60-70% before the Iran conflict, as refiners replaced disrupted West Asian supplies with Russian, US, Venezuelan and West African barrels. The Indian crude basket is a pricing benchmark that broadly represents refiners' crude procurement costs. It does not materially affect fuel pricing or supply contracts. Although India now imports oil from about 41 countries, the basket comprises only the globally traded Brent and Dubai-Oman benchmarks. Russian crude—the country's largest import source—is excluded because it is not traded on exchanges.
The basket's composition is typically revised annually based on the previous year's import pattern. Before the Iran conflict, Dubai-Oman crude accounted for roughly 70% of the basket. The latest revision reflects refiners' growing reliance on Russian, Venezuelan and West African barrels after disruptions to West Asian supplies following the closure of the Strait of Hormuz amid the US-Iran war. Evolving market The change comes as Gulf producers face stiffer competition in Asia. A recent HSBC report said Asian buyers, particularly India, Japan and South Korea, have sharply increased purchases from the US Gulf Coast and other Atlantic Basin producers, including South America, as substitutes for disrupted West Asian supplies. Mint earlier reported, citing Kpler data, that India's Russian crude imports averaged 2.66 million barrels a day between 1 and 19 June, accounting for roughly half of the country's total crude imports during the period. Russia's share rose to 51%, while imports from West Africa and South America have also witnessed an increase, offsetting the decline in West Asian supplies. Also Read | Govt plans star-ratings for batteries in solar projects and energy storages “After a dip in March, Indian crude imports have broadly returned to pre-conflict levels as refiners replaced Middle East (West Asia) supplies with alternatives from Russia, the US, Oman, West Africa and South America.
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