Russian oilRussia accounted for 50.83% of India’s oil imports in July, a record share that reinforces Russia’s position as the Asian country’s main crude supplier. Shipments reached 2.47 million barrels per day, a 62.4% increase compared to the same month last year, although the volume was 4.8% below the record of 2.6 million barrels per day registered in June.
Russian oil accounts for more than half of India’s imports
Indian imports of Russian crude increased by 62.4% compared to the same month of the previous year, although the volume remained 4.8% below the 2.6 million barrels per day recorded in June.
This development confirms the importance that Russia maintains within India’s energy supply, one of the world’s largest buyers and consumers of oil.
Indian refineries maintain their purchases of Russian crude
At the beginning of the year, Indian refineries began reducing their purchases of Russian oil barrels due to the risk of higher US tariffs. New Delhi is also engaged in trade negotiations with Washington.
However, supply disruptions from Middle East Linked to the conflict with Iran, the scenario changed, Indian refineries needed to maintain purchases of Russian oil to ensure their processing and supply needs.
Furthermore, Russia consolidated its position during the first four months of the fiscal year that began in April. Its share reached 43.25% of India’s crude oil imports, averaging over 2 million barrels per day. A year earlier, its share was around 37%.
The United States increases pressure on buyers of Russian oil
On the other hand, the flow of crude oil between Russia and India faces a new factor of uncertainty the US Senate approved legislation that includes 100% tariffs for buyers of Russian oil as a mechanism of economic pressure on Moscow.
The measure still requires approval from the House of Representatives, its evolution will be especially relevant for India due to the volume that its refineries currently acquire from Russian suppliers.
The Asian country relies on foreign sources to cover more than 90% of its crude oil needs; this high exposure makes the availability of suppliers and the conditions of international trade central to its security of supply.
The Middle East is losing ground among India’s suppliers
While Russia expanded its presence, Middle Eastern producers reduced their share, between April and July they accounted for about 30% of Indian crude oil imports, compared to 43% a year earlier.
Meanwhile, Latin American oil gained ground in the Indian market, its share rising from 3.5% to 12.7%, driven mainly by larger shipments from Brazil and Venezuela.
The order among the top suppliers also changed, Russia remained in first place during the April-July period, while the United Arab Emirates overtook Iraq and moved into second place.
The increase in Emirati shipments was supported by larger volumes offered through spot market tenders. This allowed Indian refineries to broaden their purchasing options as the country adjusts its strategy in response to tensions affecting global oil trade.
Source: EnergyNow
Photo: Shutterstock
