India’s Russian Oil Imports Slide From Record High as Supply Tightens
India’s crude oil imports from Russia have eased so far this month from July’s record high, as Ukrainian attacks on Russian export infrastructure and competition from China for Russia’s barrels have dented Indian intake of Moscow’s oil. India’s imports of Russian oil hit a new all-time high in July and accounted for more than half of total Indian crude oil imports. India’s crude oil imports from…
India’s crude oil imports from Russia dipped in August compared to July’s record high, amid tightened supply from Ukraine’s attacks on Russian export infrastructure and increased competition from China. In July, India imported a staggering 2.8 million barrels per day from Russia, surpassing the previous high of 2.7 million bpd in June.
This marked the highest average monthly volume ever, according to vessel-tracking data by Kpler. However, India's imports are expected to decline to around 2 million bpd in August, with stabilization projected at slightly above 2 million bpd going forward, according to Sumit Ritolia, Manager of Modelling Refinery and Oil Markets at Kpler.
The decline is attributed to a mix of factors, including Ukraine's attacks on Russian export infrastructure, which have hampered Russia's ability to optimize its crude exports, and China's increased purchases of cheaper Russian crude oil, leaving India with fewer barrels. Consequently, Indian refiners are diversifying their supply sources, seeking alternatives in West Africa and the Americas to meet growing demand expected in the coming months.
Indian state-controlled oil refiners are continuing their search for spot crude supply amidst constraints from term deliveries due to the ongoing Middle East crisis, further straining the Strait of Hormuz as a key oil chokepoint.
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