India’s crude oil imports fell around 8 percent in April from the previous month amid the country’s efforts to ramp up domestic production and reduce reliance on imports.
According to energy tracker Vortexa, India’s total crude oil imports stood at 4.5 million barrels per day (bpd) in April, lower than 4.9 million bpd in March.
Despite decline in total oil imports, Russia’s supply of crude oil to India increased by 18 percent in April from last month. Moscow supplied 1.7 million barrels of crude oil to India in April, as against 1.5 million bpd in March. Russian Urals—sour grade—was India’s major import from Moscow.
The rise in oil supply from the Eurasian country comes despite reports of narrowing discounts on Russian oil and tighter US sanctions on the country.
Meanwhile, India’s import of crude oil from other countries including Iraq, Saudi Arabia, UAE and the US fell in the month. Iraq supplied 776,000 bpd of crude oil to India in April, lower than 1.11 million in March while India purchased 681,000 bpd and 103,000 bpd of oil in the month from Saudi Arabia and the US, respectively.
Imports from Venezuela also declined to 66,000 bpd in April compared to 161,000 bpd in the previous month. India started buying crude oil from Venezuela in late 2023 after a gap of three years. India last imported Venezuelan oil in 2020 after which the country came under sanctions from the US.
India was also the top buyer of Russian crude oil. Moscow supplied more oil to India than China in April, a trend reversal from last month. The largest energy consumer in the world, China’s crude oil imports from Russia were at 1,270 bpd in April as against 1,840 bpd in March.
ALSO READ: India’s oil consumption rises 4.6% in FY24 but domestic production remains steady
The Indian government has been pushing the country’s oil explorers to increase domestic production amid a grim global geopolitical situation driving volatility in crude oil prices. India’s largest oil and gas explorer ONGC aims to reverse years of declining production by FY25 and is eyeing new output from its Krishna Godavari (KG) basin to gradually raise output. Production boost from ONGC’s KG basin is expected to increase the company’s overall oil production by 11 percent and that of gas by 15 percent.
Crude picture
Crude oil prices have been volatile since the beginning of 2024 due to geopolitical tensions in the Middle East, supply cuts announced by OPEC+, including Russia, and a demand slump globally.
Brent had jumped over $90 per barrel in mid-April post Iran’s attack on Israel. However, oil prices have since cooled down to around $82-85 per barrel as the attack had minimal effect. In the first quarter of 2024 crude oil prices rose 16 percent on account of attacks on Russian energy infrastructure by Ukraine, the OPEC’s decision to extend supply cuts till mid of 2024 and geopolitical crisis.
Oil and Petroleum Minister Hardeep Singh Puri in late April had a telephonic conversation with OPEC Secretary General Haitham Al-Ghais to discuss volatility in global oil market. Puri emphasised the importance of balancing market stability and affordability. The minister had pointed out on several occasions the need to maintain stable crude oil prices, as volatility might result in demand destruction.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
