Russian crude imports drop nearly a quarter in two months

Russian crude imports drop nearly a quarter in two months
Russian crude imports drop nearly a quarter in two months
Indian imports of Russian crude oil have fallen by a quarter in the past two months, alongside a drop in overall crude imports, according to energy freight tracker Vortexa.

India imported 738,024 barrels per day (bpd) of Russian crude oil in August, down 18% from July and 24.5% below June, according to Vortexa. China’s imports of maritime crude oil from Russia, however, remained largely stable during this period. India’s total crude oil imports fell to 4,049,167 bpd in August, 13% below July and 15% below June.

Russian crude remains more attractive than other grades, although discounts for Indian importers have almost halved to $5-6 per barrel on a delivered basis, which bodes well for the import of the commodity, especially given the impending European Union ban on imports of Russian crude oil. Refineries in India generally maintain a balance in their purchases by sourcing different grades of crude oil from multiple sources.

Russia’s share drops to 18.2%

“Since May, we have seen Russian crude imports into India accounting for around 20% of the country’s total crude imports, displacing conventional supplies from the Middle East, West Africa and the United States. I definitely see room for more Russian crude heading to India. in the coming months as the EU embargo on imports of Russian crude nears,” said Vortexa analyst Serena Huang.

Overall crude oil imports could also quickly return to previous levels amid strong demand for refined fuels, analysts said.

In August, Russia slipped a notch to third place among the biggest exporters of crude oil to India, while Saudi Arabia climbed two places to become the top exporter to India, reversing Iraq for the first time in a year. Saudi Arabia held a 20.8% market share in India in August, followed by Iraq (20.6%) and Russia (18.2%).

Crude oil imports from Iraq and the United Arab Emirates fell 18% and 20% respectively in August from July, while supplies from Saudi Arabia and the United States were down 3 % and 7% respectively.

China imported 1,083,315 bpd of Russian crude oil transported by sea in August, 3.5% more than in July and 3% less than in June. China is also a major consumer of Russian crude oil received by pipeline.

Since the outbreak of war in Ukraine, India has seized large quantities of Russian crude oil, taking advantage of deep discounts available at a time when high prices are hurting economies around the world.

Europe has planned to shut down most Russian oil imports from December, which could make more supplies available for India and China.

The West has pressured India to reduce Russian oil imports, and the United States has also offered price caps in an attempt to reduce Moscow’s energy revenue. Indian officials and industry executives believe that implementing the price cap would present many challenges.

Loading of Russian crude oil for exports rose 10% in one month to 3,505,980 bpd in August. Of this total, approximately 600,000 bpd was destined for India and 800,000 bpd for China.

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. Russian crude imports drop quarter months

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