BPCL to Cut Russian Crude Buying in November as Middle East Grades Gain Edge
India's state refiner BPCL plans a sharp cut in Russian crude purchases for November as higher freight and premiums make Middle Eastern grades cheaper.
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what happened
Bharat Petroleum Corporation (BPCL), India's state-run refiner, plans to significantly reduce its Russian crude purchases in November, according to head of finance Vetsa Ramakrishna Gupta, who spoke on a call with analysts. Higher freight costs and elevated premiums have made Middle Eastern grades more attractive. Russian crude made up about 37% of BPCL's sourcing mix in the July-September quarter.
Gupta said Middle Eastern supplies should rise in October and November compared with the first quarter, when disruptions in the Strait of Hormuz hit flows from the region. Volumes from Iraq and Kuwait have not yet returned to full levels. The premium on Russian oil for December cargoes has fallen to $1-2 a barrel over regional benchmarks, versus $12-13 for October.
BPCL also expects lower refinery runs in the third and fourth quarters due to planned maintenance.
why it matters
BPCL's move fits a wider pattern: Indian refiners are shifting away from Russian barrels when Middle Eastern grades offer better economics. For markets, this points to weaker Indian demand for Urals and pressure on Russian discounts, while freight and Hormuz disruptions also shape the premiums to Brent.
market impact
Oil: weaker Indian demand for Russian grades — pressure on Urals premiums
tags
instruments
sources
- BPCL to Cut Russian Oil Buying as West Asian Crude Gains Edge — Moody's, 27 October 2026 at 04:15 UTC
- BPCL to Cut Russian Oil as West Asian Crude Gets Cheaper — Moody's, 27 October 2026 at 04:16 UTC
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