India's crude oil imports from Russia and Saudi Arabia sank in the month of May as the country ramped up oil purchase from the United States, Iraq, and other suppliers, showed data from energy cargo tracker Vortexa.
In May, India imported 1.72 million barrels per day (bpd) of crude oil from Russia, a slight decline from 1.78 million bpd in the previous month. From Saudi, India bought 6,06,000 bpd of crude oil in May, as against 6,72,000 bpd in April.
India’s total imports, however, remained almost unchanged in the month as imports climbed from other countries. Oil imports from the US doubled in May to 224,000 bpd from 111,000 in the last month while Iraq supplied 935,000 bpd of crude oil in the month, compared to 806,00 bpd in April. Imports increased from other suppliers including the UAE and Venezuela as well.
India’s total imports stood at 4.54 million bpd in May, up from 4.58 million bpd in April.
The decline in oil imports from Russia and Saudi could also be a reflection of supply cuts announced by the two countries. Saudi-led OPEC+ had announced on June 2 that it would continue with the voluntary cuts of 2.2 million bpd until September 2024 and would thereafter phase out the cuts over the duration of a year.
On the other hand, the US has been increasing oil production while Iraq, despite pledging to reduce supply, has witnessed an increase in production.
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Russian Urals
An interesting trend in May was the slump in imports of sour grade of Russian crude oil by India. Russian Urals, due to high discounts, have been the top buy of India from Moscow.
In May, India bought 1.44 million bpd of Russian Urals compared to 1.56 million bpd in the previous month. India’s imports of others grades, primarily Sokol, increased significantly in the month. Import of grades such as ESPO blend and Varandey also rose.
Russia has become the top destination for India to buy crude oil after the war broke between Moscow and Ukraine in 2022. The Eurasian countries supply around 35 percent to 40 percent of India’s oil supplies every month as Russia provides deep discounts on its crude. However, with moderation in Russian oil supplies, Moscow is providing narrower discounts to India in the recent months.
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