Russia's crude oil exports to India have sharply declined to below 1 million barrels per day (b/d) in November, marking the lowest in 13 months. Preliminary data attributes the drop to factors such as increased freight rates, stricter sanctions compliance, and a reported disagreement over rupee payments for Russian crude. India, once Russia's largest buyer of seaborne crude, experienced a 47% month-on-month decrease, with November averages at 892,000 b/d compared to the yearly average of 1.53 million b/d. The decreasing discounts for Russian crude arriving at Indian ports and strengthening values for medium sour crudes globally have contributed to the decline in exports. Additionally, Russia's central bank reportedly no longer wishes to accept payments in rupees for oil exports, posing further challenges to the payment mechanism for Russian oil imports in India. The situation reflects a complex interplay of geopolitical, economic, and financial factors impacting the global oil trade.

SOURCE:GOOGLE