India’s Oil Imports From Russia Decline To Seven-Month Low In August

India’s imports from Russia declined for a third consecutive month in August. It imported 1.46 million barrels per day from Russia in August, compared to 1.91 million bpd in the previous month.

Meanwhile, imports from Saudi Arabia increased to 8,20,000 bpd from 4,84,000 bpd a month ago as a result of strong refinery runs. ( Image Source :Getty )

India saw a big fall in it’s import of cheap Russian oil in August, industry data revealed. The oil imports dipped to a record low of seven months due to a weakening in demand caused by monsoon rains.

According to a PTI report, India’s imports from Russia declined for a third consecutive month in August. It imported 1.46 million barrels per day from Russia in August, compared to 1.91 million barrels imported in the previous month, data from energy cargo tracker Vortexa revealed. Notably, India is the world’s third-largest oil consumer.

India also reduced imports from other main suppliers, like Iraq. The oil imports from Iraq reduced to 8,66,000 barrels per day from 8,91,000 bpd, on a monthly basis. Meanwhile, imports from Saudi Arabia increased to 8,20,000 bpd from 4,84,000 bpd a month ago. This increase was a result of strong refinery runs and declining supplies from Russia. Whether this upward trend can be maintained remains to be seen, the report noted.

Notably, Russia contributed a record 2 million bpd in May in India’s oil imports. This share increased after the Russia-Ukraine conflict started in February last year, and refiners opted for heavily discounted shipments. Russia started offering major discounts after Western countries boycotted it for it’s decision to invade Ukraine and Russian oil was sanctioned. 

These developments led to Russian Urals crude being traded at a discount to the global benchmark. But now the discount has narrowed from about $30 per barrel last year to less than $10 per barrel. 

India forms the biggest market for Russian oil as Chinese imports have reached their saturation limit due to large-scale electrification of vehicles and weakening demand. The upcoming festive season is expected to boost domestic demand, which is expected to take the country’s oil imports on an upward trajectory for the rest of the year, Serena Huang, Vortexa’s head of Asia-Pacific analysis noted.