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Finance

India's BPCL expects Russian crude purchases to fall in November

Published by Global Banking & Finance Review

Posted on October 26, 2026

2 min read

· Last updated: October 26, 2026

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BPCL Sees Russian Crude Purchases Drop in November Due to Rising Costs

BPCL's Crude Sourcing Strategy and Market Dynamics

By Sethuraman N R

Decline in Russian Crude Purchases

NEW DELHI, Oct 26 (Reuters) - India's Bharat Petroleum Corp Ltd expects Russian crude purchases to fall in November as higher freight costs and unattractive offers make Middle Eastern grades more economical, a company executive said on Monday.

  • Commercial Viability of Middle Eastern Grades

    Russian volumes in November would be lower because Middle Eastern grades are more commercially viable compared to Russian grades, Vetsa Ramakrishna Gupta, BPCL's head of finance, told analysts after the company's quarterly earnings.

  • Impact of Freight Costs on Russian Cargoes

    Russian cargoes were "significantly reduced" for November because of higher freight costs, Gupta said

Crude Sourcing Mix and Regional Shifts

  • Russian Crude in BPCL's Sourcing Mix

    In the July-to-September quarter, Russian crude was about 37% of BPCL's crude sourcing mix

  • Increase in Middle Eastern Supplies

    BPCL said supplies from the Middle East had increased compared with the first quarter and that it expected higher volumes from the region in October and November

  • India's Import Trends

    Surge in Middle Eastern Crude Imports

    India's imports of Middle Eastern crude oil surged in September, returning to pre-war levels, while its refiners cut back purchases of Russian oil amid stiff competition with China, ship tracking data showed

Pricing and Operational Outlook

  • Narrowing Premiums for Russian Crude

    However, premiums for Russian crude have narrowed to about $1-$2 a barrel for December cargoes from $12-$13 a barrel in October, BPCL said

  • Refinery Operations and Maintenance

    Planned Shutdowns and Maintenance

    BPCL also warned refinery runs may moderate in the third quarter and fourth quarter as it undertakes a planned 30-day shutdown of some units at its Mumbai refinery and a 30-to-40-day maintenance turnaround involving some units at Kochi refinery

  • Stake Dilution Plans

    The company also said it plans to dilute at least a 30% stake in its proposed Andhra Pradesh refinery and petrochemicals project

(Reporting by Sethuraman NR; Editing by Christian Schmollinger)

Key Takeaways

  • BPCL forecasts reduced Russian crude purchases in November as Middle Eastern oil is more cost-effective amid rising freight costs (V.R. Gupta)
  • September saw India’s Middle Eastern crude imports rebound to pre‑war highs (~2.8 mbpd), while Russian crude share dropped to ~33.5 %, easing pressure on Russian sourcing (in.marketscreener.com)
  • Premiums for Russian crude have shrunk to about $1‑2/barrel for December, down sharply from October’s $12‑13/barrel, improving competitiveness (in.marketscreener.com)

References

Frequently Asked Questions

Why is BPCL reducing Russian crude purchases in November?
BPCL is cutting Russian crude purchases due to higher freight costs and more commercially viable offers from Middle Eastern suppliers.
What percentage of BPCL's crude came from Russia in July-September?
About 37% of BPCL's crude sourcing mix was Russian during the July-to-September quarter.
How are BPCL's Middle Eastern crude imports changing?
BPCL has increased its Middle Eastern crude supplies and expects higher volumes from the region in October and November.
Will BPCL's refinery operations be affected in upcoming quarters?
Yes, BPCL anticipates moderating refinery runs in Q3 and Q4 due to planned shutdowns and maintenance at its Mumbai and Kochi refineries.
What change was noted in Russian crude premiums?
Premiums for Russian crude narrowed to $1-$2 per barrel for December cargoes, down from $12-$13 in October.

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