India & China's crude oil imports from Russia in May breach all-time highs, shows ship-tracking data

2 Jun 2023 , 10:41 AM

The amount of Russian crude oil that India and China bought in May is thought to have surpassed all previous records.

According to news agency Reuters, who cited ship tracking data, demand for oil from the Middle East and Africa fell as consumers, including these two major nations, gorged on discounted supplies from Russia.

Top consumers of Russian oil are China, the top crude importer in the world, and India, which ranks third. These two imported roughly 110 million barrels from Russia in May. This was a rise of almost 10% month over month, defying American warnings against price cap evasion.

According to estimates based on data from Vortexa, Russian supplies arrived in India at a record high of 8.6 million tonnes (62.8 million barrels), while China is anticipated to have received 6 million tonnes, unchanged from April.

Kpler data, another significant tracker, also revealed a similar pattern. According to Kpler, China’s imports were 49.2 million barrels, while India’s imports reached a record 66.7 million barrels.

In addition to a stable supply of ESPO crude imported from the Pacific port of Kozmino, the data show that Indian refiners increased their purchases of medium-sour Urals crude and lighter grades like Sokol and Varandey.

In recent months, China has purchased an increasing amount of Russian oil as refiners try to slash feedstock prices and increase refining profits amid a slower-than-anticipated economic rebound.

The increase in Russian supplies occurs before a meeting of OPEC and its partners on June 4.

Despite an OPEC+ commitment in April to further reduce supply starting in May, producers are under some pressure to take action to support Brent prices, which have dropped 5% this week to approximately $73 per barrel.

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