India’s Crude Oil Imports from Russia Reach 13-Month High in June

India’s crude oil imports from Russia have hit a 13-month high in June, showcasing a significant increase in Russia’s share in India’s oil imports. This surge can be attributed to the resumption of imports of various grades of Russian crude, including Sokol, which faced initial issues earlier in the year. The country imported 2.13 million barrels of crude oil per day from Russia last month, marking the highest since May 2023.

Interestingly, the share of US crude in India’s oil imports also saw a steep increase of 75% sequentially, with Indian refiners seeking lighter grades to balance out the density of heavier Russian grades. The imports from the US reached 371,000 barrels per day in June, the highest since January 2023, predominantly consisting of WTI Midland.

On the other hand, import volumes from Iraq and Saudi Arabia, other top suppliers of crude oil to India, witnessed a decline of 24% and 25% respectively. This shift in import patterns has been influenced by factors such as pricing differentials and production cuts in accordance with OPEC+ commitments.

Reliance Industries emerged as the largest buyer of Russian crude oil in June, followed by the state-owned Indian Oil Corp. Reports suggest that discussions are ongoing between Indian refiners and Russian exporters to secure term deals for crude supplies at fixed discounts. However, negotiations seem to be at a standstill as Russian exporters are reluctant to offer discounts beyond $3 per barrel for Urals.

The dynamics of the global oil market, including production cuts and refinery runs, are playing a crucial role in shaping the import patterns of countries like India. As the demand for various grades of crude oil continues to evolve, it will be interesting to see how Indian refiners navigate these changing dynamics to meet their energy needs efficiently.