Russia's share of India's June oil imports surges to record 950,000 bpd

By Nidhi Verma

oil prices
Image used for Representation
Reuters NEW DELHI
3 min read Last Updated : Jul 11 2022 | 8:47 PM IST

By Nidhi Verma

NEW DELHI (Reuters) - India's oil imports from Russia surged to a record of around 950,000 barrels per day (bpd) in June, accounting for nearly a fifth of overall imports by the world's third largest oil consumer, data provided by trade sources showed.

Indian refiners have been snapping up Russian oil sold at hefty discounts to Brent and Middle East staples after some Western companies and countries shunned purchases from Moscow following its invasion of Ukraine on Feb. 24..

India shipped in about 4.8 million bpd of oil in June, down 3.8% from May but about 23% higher than a year earlier, the data showed. Last year, India's oil imports were low as fuel demand was hit by a second deadly coronavirus wave.

Oil imports from Russia rose 15.5% in June from May, while those from Iraq and Saudi Arabia dropped by 10.5% and 13.5%, respectively, dragging the share of the Middle East to 56.5% from 59.3%, the data showed.

Russia continued to be the second largest oil supplier to India after Iraq, while Saudi Arabia remained in third spot for the second month in a row.

The higher oil intake from Russia raised its share of India's overall imports to 19.8% from 16.4% in May, and that of Commonwealth of Independent States (CIS) countries to about 24% from 20.3% in May, the data showed.

Graphic: Share of various regions in India's monthly oil imports- https://graphics.reuters.com/INDIA-OIL/movananojpa/Pasted%20image%201657541373657.png

Graphic: Share of various regions in India's oil imports-https://graphics.reuters.com/INDIA-OIL/myvmnlnynpr/Pasted%20image%201657541123047.png

Cheaper Russian oil is reducing losses for state-run Indian refiners selling fuel at lower prices on the domestic market, while adding to profits for private firms Reliance Industries Ltd and Nayara Energy, which export most of their refined products.

India, also the world's third biggest oil importer, has defended its purchase of "cheap" Russian oil, saying it provided only a fraction of the country's overall needs and a sudden stop would drive up costs for its consumers.

The United States and other Group of Seven rich nations last month agreed to explore imposing a ban on transporting Russian oil sold above a certain price in an effort to reduce Moscow's revenues and deplete its war chest.

During April-June, the first quarter of India's fiscal year, the country's oil imports from Russia rose to 682,200 bpd from 22,500 bpd in the same period last year, the data showed.

Higher oil imports from Russia curbed OPEC's share in India's overall imports to 65.2% during the quarter and 60.8% in June. OPEC's share of India's oil imports has been declining since March, the data showed.

Graphic:Opec's share of India's oil imports drop to record low- https://graphics.reuters.com/INDIA-OIL/dwpkrbrqxvm/Pasted%20image%201657539307310.png

 

(Reporting by Nidhi Verma; Editing by Mark Potter)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Oil importsRussiaCrude Oil Price

First Published: Jul 11 2022 | 8:47 PM IST

Next Story