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 Russia rose to 2.8 million barrels per day (bpd) in July, up from the previous high of 2.7 million bpd in June, for the highest average monthly volume ever, according to vessel-tracking data by Kpler.
In August, India’s imports of Russian crude oil are set to decline to about 2 million bpd, Sumit Ritolia, Manager Modelling Refinery and Oil Markets at energy flows analytics firm Kpler, told Bloomberg on Wednesday.
Going forward, India’s purchases from Russia are set to stabilize at a level of just above 2 million bpd, according to Ritolia.
The recent pullback in imported crude from Russia is the result of a combination of factors.
First, Ukrainian attacks on Russian export infrastructure haven’t allowed Russia to take full advantage of available crude for exports, the volumes of which have been rising due to the nearly-daily Ukrainian drone attacks at Russian refineries.
Then there is China, which has intensified buying of cheaper Russian crude oil, squeezing India out of some barrels.
As a result, Indian refiners are looking far and wide for alternative supply, including from West Africa and the Americas, to meet demand that is expected to rise in the coming months.
Indian state-controlled oil refiners continue to search the market for spot crude supply as term deliveries are constrained by the ongoing crisis in the Middle East and its key oil chokepoint, the Strait of Hormuz.
In recent weeks, India’s state-run refiners have continued their buying spree of crude from West Africa as the Middle East crisis has sapped supply and made deliveries uncertain.
By Tsvetana Paraskova for Oilprice.com
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