Russian crude exports to India fell in June

4 Jul 2023 , 11:33 AM

According to energy cargo tracker Vortexa, India’s imports of crude oil from Russia decreased 6.5% in June after reaching a record high in May, while those from Iraq, Saudi Arabia, and the US rose.

In June, India purchased 1.8 mbd (million barrels per day) of Russian crude. In June, China imported 1.6 mbd of seaborne Russian oil, an increase of 12% over May, and Europe purchased 0.42 mbd, a 28% increase over May.

Russian oil’s percentage of India’s total imports fell from 43% in May to 39.5% in June. The next three greatest suppliers to India, Iraq (18.6%), Saudi Arabia (16.1%), and the US (5%), combinedly had a percentage that was almost the same to Russia’s.

In June, India’s total crude imports rose 2% month over month to 4.5 mbd. Since August 2022, when they were 731,000 barrels per day, the nation’s imports of Russian oil have climbed each month. Historically, India bought very little from Russia, but since the start of the Ukraine War, a significant discount on Russian oil has made it appealing for Indian refiners.

State-run refineries in India purchased roughly twice as much from Russia in June as did private refineries. All significant Russian oil imports, including those of Urals, Sokol, ESPO mix, and Varandey, slightly decreased in June.

In June, India’s imports of refined goods from Russia were almost unchanged at 140,000 barrels per day. However, the amount of Russian goods imported by China rose by about a quarter to 358,000 barrels per day in June, while the amount imported by Europe jumped by about a fifth to 590,000 barrels per day. Russian oil export prices were capped by the G7 in December, although this had little impact on commerce.

However, Indian refiners have been forced to pay for Russian oil that is priced beyond the cap in currencies other than the dollar.

A gang of mercenaries seemed to briefly threaten the Russian government’s authority last month. The oil market briefly became concerned about Russian supply as a result, but things quickly got back to normal.

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