Russian oil flows to India on track for two-year high in April

Russian oil flows to India on track for two-year high in April.

Russian oil shipments to India are heading for the highest level in two years this month as flows rebound following disruptions caused by US sanctions on Moscow’s energy industry.

India’s imports of Russian crude are on track to hit 2.15 million barrels a day in April, the biggest monthly volume since May 2023, according to data from Kpler. Shipments have climbed since tumbling to a 14-month low in February.

The Russia-India oil trade is returning to near normal levels as supply chains are rebuilt after US sanctions rattled the industry earlier this year, upending the flow of cheaper crude to buyers in the South Asian nation. The fixtures for April are preliminary and some cargoes could still roll into May.

“The economics remains compelling for Indian refiners,” said Sumit Ritolia, the lead research analyst for refining and modeling at Kpler. Russian Urals are trading at “favorable discounts” relative to crude from West Africa and the Middle East, he added.

However, a rebound in Russian refining throughput over the next few months may reduce exports and moderate flows to India after May, Ritolia said.

Over a dozen cargoes are heading for Jamnagar in the western state of Gujarat where Reliance Industries Ltd. operates world’s largest oil refining complex, according to data from Kpler. A Reliance spokesman didn’t immediately respond to an email seeking comment on the matter.