India’s Russian Crude Oil Import Reaches 1.6 Mn Barrels A Day In Feb, More Than Saudi, Iraq Combined

India’s import of Russian crude oil soars to a record high of 1.6 million barrels per day in February. With this, Russia's share to India's crude oil demand increases to 35 per cent.

New Delhi: India’s import of Russian crude oil has been increasing steadily over the last few months and in February, the number went as high as 1.6 million barrels per day. This is more than what Indian imports from its traditional suppliers, Saudi Arabia and Iraq combined, reported PTI. 

According to energy cargo tracker Vortexa, Russia continued to be the single largest supplier of crude oil for a fifth straight month by supplying over one-third of all oil India imported, PTI added in its report. This comes as refiners continue to hold on to Russian supplies available at a discount to other grades. 

Russia, which had a market share of 0.2 per cent in India's import list before the start of the Russia-Ukraine war last year, has taken its share to 35 per cent share. 

As per the report, India, the world's third-largest crude importer after China and the United States, has been snapping Russian oil available at a discount after West sanctioned Moscow over its invasion of Ukraine. With increasing imports from India’s all-time ally Russia, oil imports from Saudi Arabia and the United States have significantly decreased.  

Oil imports from Saudi fell 16 per cent month-on-month and that from the US declined 38 per cent, reported PTI. 

According to Vortexa, Russia now accounts for more than the combined oil imported from Iraq and Saudi Arabia, India's prime oil suppliers for decades. 

As per the report, Iraq supplied 9,39,921 barrels per day (bpd) oil in February while Saudi supplied 6,47,813 bpd oil. UAE overtook the US to become the fourth largest supplier at 4,04,570 bpd. The US supplied 2,48,430 bpd, down from 3,99,914 bpd in January, the report further mentioned. 

Notably, Iraq and Saudi supplies are the lowest in 16 months. 

Vortexa's head of Asia-Pacific analysis, Serena Huang, said, "Indian refiners are enjoying a boost in refining margins from processing discounted Russian crude." 

"Refiners' import appetite for Russian barrels are likely to remain robust as long as the economics are favourable, and financial and logistical services to support the trade are available," Huang added. 

Since the war, Russia has been selling huge amounts of crude oil to India to manage its energy exports after the European Union banned imports in December last year.