Russia has for the initially time emerged as best oil provider to India replacing Iraq as refiners final thirty day period snapped up oil from Moscow fearing a cost cap from Dec. 5 could strike materials and choke payment avenues, info received from trade resources showed.

India’s oil imports from Russia rose for the fifth straight month, totaling 908,000 barrels per working day (bpd) in November, up 4% from Oct, the info confirmed.

The Group of Seven nations, Australia, and the 27 European Union countries have imposed a price cap of $60 a barrel on Russian seaborne oil from Dec. 5 as the West tries to restrict Moscow’s means to finance its war in Ukraine.

The selling price cap prepare phone calls for G7 international locations to deny coverage, finance, brokering, navigation, and other solutions to oil cargoes priced higher than the price tag cap on crude and oil merchandise.

Russian oil accounted for about 23% of India’s overall import of about 4 million bpd oil in November, the data showed.

India’s overall imports in November declined 11% from Oct on reduce purchases by Russia-backed Indian refiner Nayara Electricity, which experienced shut its 400,000 bpd refinery for maintenance for the duration of the thirty day period, the details confirmed.

India, which almost never made use of to purchase Russian oil due to the fact of pricey logistics, has emerged as Russia’s next greatest oil shopper after China as refiners snap up discounted crude shunned by Western nations due to the fact the February invasion of Ukraine.

Past month India’s oil imports from Iraq declined to the lowest considering the fact that September 2020, while that from Saudi Arabia plunged to a 14-month minimal, the data confirmed.

Indian refiners that have been to begin with wary of positioning orders for Russian crude for loading post Dec. 5, have resumed purchases from Moscow as sanctions enable direct payment for Russian oil, resources explained.

Bigger purchases of Russian oil dragged down Indian imports from the Center East and member nations of Group of Petroleum Exporting Countries (OPEC) declined to the lowest ever in November, the information confirmed.

For the duration of April-November, the first eight months of this fiscal calendar year, Iraq continued to be the greatest oil supplier to India adopted by Saudi Arabia and Russia, which has knocked down UAE to the fourth place.