- Russian oil cargoes are nonetheless crusing by way of the Crimson Sea to get to India, in keeping with S&P International.
- Iran-backed Houthi rebels have been attacking business ships within the Crimson Sea since November.
- Many business transport traces and vessels have rerouted from the Crimson Sea to keep away from getting caught within the assaults.
Assaults by Houthi rebels on business ships within the Crimson Sea are disrupting world commerce, with many vessels altering up their transport routes to keep away from danger.
Main transport traces together with Maersk and Hapag-Lloyd are avoiding crusing by the Crimson Sea — a key route between Asia and Europe. The transfer is growing transit occasions and driving up ocean freight charges.
Nonetheless, Russia’s commerce with India seems to be an exception. There look like no diversions of Russian vessels carrying crude oil certain for India which might be touring by the Crimson Sea, S&P International reported on Monday.
“India’s demand for Russian crude stays resilient regardless of Crimson Sea threats, with no identified diversions seen to date,” mentioned Sumit Ritolia, a refinery economics analyst at S&P International.
Russian oil cargoes usually sail by the Crimson Sea earlier than reaching India. This at present stays the popular route, in keeping with S&P International’s commodity commerce intelligence service.
In distinction, latest information means that European oil shoppers are avoiding the Crimson Sea by buying from the US as a substitute of the Center East.
A minimum of 44 million barrels of Russian oil had been headed to India as of Monday and to date, there have been no commerce diversions, in keeping with S&P International.
It is not instantly clear why ships carrying Russian oil to India have not rerouted to keep away from potential assaults within the Crimson Sea. Nonetheless, oil tankers had been nonetheless crusing by the Crimson Sea final month to keep away from the upper prices of crusing round Cape of Good Hope in South Africa, Reuters reported on Monday.
India has turn out to be a significant vitality buyer of Russia’s after the West imposed sweeping sanctions on Moscow over its invasion of Ukraine in February 2022.
Alexander Novak, Russia’s deputy prime minister, mentioned in an interview final month that India’s share of Russian oil exports had grown from nearly nothing earlier than the battle — changing its earlier main market in Europe.
Russia accounted for 35% of India’s crude oil imports in 2023, in keeping with information from S&P International. Russian oil exports are enticing as they’re cheaper than competing worldwide grades — on January 5, Russian oil was $17.5 a barrel cheaper than Dated Brent, per S&P International’s Platts commodity service.
Hardeep Singh Puri, India’s petroleum and pure fuel minister, mentioned lately that the nation is monitoring the state of affairs within the Crimson Sea.
