iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

BPCL in Talks with Rosneft for Oil Purchase, Discounts on Russian Oil Narrowing

28 Jul 2023 , 12:14 PM

Bharat Petroleum Corp (BPCL) continues to be in discussions with Russian oil major Rosneft regarding a potential oil purchase deal, according to Vetsa Ramakrishna Gupta, the company’s head of finance. However, the negotiations have not yet been concluded.

The talks come amidst narrowing discounts on Russian oil compared to previous quarters, as highlighted by Gupta during an analysts’ conference after BPCL’s June quarter earnings report.

Indian refiners have been taking advantage of discounted Russian oil, particularly since other countries imposed sanctions on Moscow following its invasion of Ukraine. The discounted prices have made Russian oil more cost-effective than similar grades from the Middle East.

However, Gupta mentioned that discounts on Russian oil are shrinking, making the advantage of purchasing Russian crude less appealing if the discount continues to diminish, as per sources and information.

Russian Urals oil prices for August loading reportedly jumped above the $60 per barrel price cap due to narrowing discounts and tightening supply, according to sources.

Indian government officials expressed concerns last month that the narrowing discounts and payment issues could impact India’s Russian oil imports.

The narrowing of discounts is partly attributed to OPEC+’s decision to cut oil output. BPCL has mostly been procuring Russian oil at or below the $60 per barrel price cap set by the European Union and the G7 nations to limit Russia’s oil revenue.

Gupta assured that BPCL had managed to settle payments for Russian oil so far, despite encountering problems earlier when the cost exceeded the price cap level. The company remains optimistic that more banks are ready for settlement, reducing concerns about payment issues. However, they acknowledge the need to monitor any potential problems in purchases beyond the price cap.

BPCL, India’s second-largest state refiner, can utilize approximately 30%-40% of Russian oil for its three refineries with a combined capacity of 726,000 barrels per day.

For feedback and suggestions, write to us at editorial@iifl.com

BPCL in Talks with Rosneft for Oil Purchase, Discounts on Russian Oil Narrowing

Related Tags

  • BPCL
  • oil
  • Rosneft
  • Russian oil
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.