Based on my recollection from the articles I read over a year ago was that their first choice was to distill and sell refined products. However, the amount of oil India was buying from Russia greatly exceeded their refining capacity. It also greatly exceeded the potential usage in India.
So, they were brokering the oil to other entities. Many of which were not allowed to buy Russian oil.
In my business there has been various duties and quotas over the years on the import of Canadian lumber into the USA. About twenty years ago we had a quota. So, the sawmills were limited how much lumber they could ship without paying a major duty. So, they would sell FOB mill in Canada to remanufacturing plants and some Canadian wholesalers who also had quota.
They could buy at a large discount FOB mill NO quota.
It was like a license to print money for some companies.
They would bring lumber into their yard flip the paper wrap over and make out the paper work. There were thousands of trucks of lumber shipped in this way.
We called them THE QUOTA CHEATERS.
—” However, the amount of oil India was buying from Russia greatly exceeded their refining capacity. It also greatly exceeded the potential usage in India.”
India is currently importing <2 MMB/D from Russia and has a total refining capacity of 5.2 MMB/D.
Indian consumption ~4.7 MMB/D. https://t.ly/ed85I
“Oil refining capacity in India, the world’s third biggest oil importer and consumer, is at about 5.2 million bpd. Global oil producers see India as a stable outlet for their oil as it is expected to account for a quarter of global oil demand growth by 2040.” https://t.ly/v2jYS
Mostly by the intent of Russian oil sanctions, maintain volume, and depress prices.