India’s Russian oil imports hit all-time high in July

In July, India's reliance on Russian crude oil reached an unprecedented level, with shipments from the country accounting for 50.83 percent of India's total oil imports, or 2.47 million barrels per day, according to trade sources. This figure marked a 62.4 percent increase from the previous year, while slightly decreasing from the record 2.6 million bpd in June.

Initially, Indian refiners had reduced their imports of Russian oil in January to dodge higher US tariffs, but the disruption in Middle Eastern supply due to the Iran war led refiners to continue buying Russian barrels. However, India now faces uncertainty as US legislation passed this month imposes a 100 percent tariff on Russian oil imports, intensifying economic pressure on Moscow over its 2022 invasion of Ukraine.

Russia's share of India's crude imports reached a record 43.25 percent in the first four months of the financial year, averaging over 2 million bpd, up from about 37 percent a year earlier. The share of Middle Eastern suppliers declined to approximately 30 percent in the April-July period, down from 43 percent a year earlier. Latin American oil imports rose from 3.5 percent to 12.7 percent, mainly due to increased imports from Brazil and Venezuela.

India relies on imports for more than 90 percent of its crude oil requirements, making it susceptible to disruptions in global oil trade. During the April-July period, Russia was India's largest crude supplier, while the United Arab Emirates became the second-largest supplier, overtaking Iraq. The UAE, which left OPEC in April, has been providing substantial volumes through spot tenders, enabling Indian refiners to increase purchases.