India’s import of Russian oil scales new high in May


NEW DELHI: India’s import of cheap products Russian oil According to industry data, the price of oil hit another record high in May and now exceeds the sum of oil bought from Saudi Arabia, Iraq, the United Arab Emirates and the US.
According to Energy Cargo Tracker data, India took 1.96 million barrels a day from Russia in May, up 15 percent from the previous peak in April whirl.
Russia, meanwhile, accounted for nearly 42 percent of all crude oil imported by India in May. This is the highest percentage for any single country in recent years.
The increase in the Russian share came at the expense of traditional suppliers in the Middle East. According to the shipping analytics firm, shipments from Saudi Arabia fell to 560,000 tonnes – the lowest since February 2021.
Oil producers’ cartel OPEC’s share of India’s oil imports fell to an all-time low of 39 percent in May.
The Organization of the Petroleum Exporting Countries (OPEC), primarily in the Middle East and Africa, at one point accounted for up to 90 percent of all crude oil imported by India. However, that share has declined since Russian oil became available at a discount following Moscow’s invasion of Ukraine in February last year.
Russia continued to be the single largest supplier of crude oil for the eighth straight month, accounting for 42 percent of all oil imported by India.
Crude oil is converted into gasoline and diesel in refineries.
Imports from Russia are now higher than combined purchases from Iraq and Saudi Arabia – India’s biggest suppliers over the past decade – as well as the United Arab Emirates and the US.
Iraq delivered 0.83 million barrels per day (bpd) of oil in May, while the UAE delivered 203,000 bpd. The data showed that up to 138,000 bpd was sourced from the US.
From a market share of less than 1 percent in India’s import basket before the start of the Russia-Ukraine conflict in February 2022, Russia’s share of India’s imports rose to 1.96 million barrels per day in May, a 42 percent share.
OPEC supplied 1.8 million bpd of the 4.7 million bpd of oil India imported in May. According to Vortexa, this was down from the 2.1 million bpd imported in April.
In the past, Indian refineries rarely bought Russian oil due to high freight costs. Now they are grabbing plenty of Russian cargo available at a discount compared to other qualities as some Western nations refused due to Moscow’s invasion of Ukraine.
Purchases from Russia in May more than doubled the 0.83 million bpd of oil bought from Iraq, which has been India’s top oil supplier since 2017-18. Saudi Arabia was pushed back to 3rd place.
“India’s imports of Russian crude continue to hit new highs, hitting nearly 2 million bpd in May. Refiners have tested processing Russian crude and gained their trust, as well as their insatiable appetite for it.”
“Russian crude is likely to grow as much as it has room to scale back on-site crude purchases,” said Vortexas head of Asia-Pacific analysis. Serena Huang.
The average cost of Russian crude oil that landed on the Indian coast in April, including freight costs, was $68.21 a barrel – the lowest since the Ukraine war. The average cost of Saudi Arabian crude sent to India in April was $86.96 per barrel, while Iraqi oil was priced at $77.77 per barrel.
The import price for May has not yet been published.
Russia is selling record amounts of crude oil to India to fill the gap in its energy exports after the European Union banned imports in December.
In December, the EU banned Russian sea oil and introduced a price cap of US$60 per barrel, preventing other countries from using EU transport and insurance services unless oil is sold below that cap.
Industry officials said Indian refiners would use the UAE dirham to pay for oil imported at less than $60.
According to Vortexa, India imported just 68,600 bpd of oil from Russia in March 2022.

Source link


Please enter your comment!
Please enter your name here

Share post:




More like this

Sensex falls 610 pts on selling spree, weak cues

MUMBAI: Across-the-board selling, on the back of weak...

Adani: Abu Dhabi’s IHC to exit two Adani companies

MUMBAI: A year and five months after it...

Funding Decline: Startups see 72% funding fall in January-September | India News

NEW DELHI: Funding for Indian startups declined by...