Russia’s share in India’s crude imports spikes to 40 percent in April as Indian refiners seek discounted oil.
Russia’s influence on India’s crude oil imports has surged to nearly 40 percent in April, up from 30 percent in March, approaching its peak of 42 percent last July. Indian refiners’ strategy to manage escalating global oil prices by sourcing discounted Russian oil has driven this increase.
According to Vortexa data cited in an ET report, Indian refiners imported 1.78 million barrels per day (mb/d) of crude oil from Russia in April, marking a 19 percent rise from March. This volume surpasses China’s imports of 1.27 mb/d and Europe’s 396,000 barrels per day during the same period.
Despite a decline of 8 percent in overall crude oil imports to India in April, with Iraq’s imports dropping by 31 percent and Saudi Arabia’s by 6 percent, Russia emerged as the largest supplier, surpassing Iraq, Saudi Arabia, and the UAE combined.
The preference for Russian crude among Indian refiners is evident, with Russia’s share in April exceeding the 2023-24 average of 35 percent. This trend reflects the cost-saving benefits for Indian refiners amidst rising global oil prices.
The surge in Russian crude imports in April reached a nine-month high, attributed to increased Russian exports in preceding months and reduced imports by Chinese refiners.
Indian refiners, including Reliance Industries and Nayara Energy, accounted for 45 percent of all Russian crude oil imports to India in April, further highlighting the significant reliance on discounted Russian oil to mitigate increasing costs amidst the current global oil market dynamics.
