India’s imports of Russian crude oil climbed to a record high in June as refiners increased purchases of discounted barrels to offset supply risks linked to disruptions around the Strait of Hormuz, according to preliminary ship-tracking data from LSEG and Kpler, as reported by Reuters.The world’s third-largest oil importer received around 2.70 million barrels per day (bpd) of Russian crude during June, up sharply from May levels.Kpler estimated India’s Russian oil imports at 2.13 million bpd in May, while LSEG pegged them at 1.95 million bpd.Despite the surge in Russian purchases, India’s overall crude imports remained broadly steady at around 4.9 million bpd, according to Kpler data.
Russia accounts for more than half of India’s oil imports
Russian crude accounted for more than 50 per cent of India’s total oil imports in June, a significant increase from 36.5 per cent in May, reinforcing Moscow’s position as India’s largest crude supplier.Indian refiners have increasingly relied on Russian oil since 2022 after Western sanctions over Moscow’s invasion of Ukraine prompted many European buyers to avoid Russian crude, leading to discounted supplies that attracted Indian buyers.The latest jump in imports also reflects refiners’ efforts to compensate for reduced availability and uncertainty surrounding Middle Eastern supplies during the Strait of Hormuz crisis.
Diversified sourcing helped refiners manage supply disruptions
According to an HSBC Global Research report, India’s crude imports have largely recovered to pre-conflict levels as refiners successfully diversified purchases beyond the Middle East.The report said refiners replaced Gulf supplies with crude sourced from Russia, the United States, Oman, West Africa and South America.“After a dip in March, Indian crude imports have broadly returned to pre-conflict levels as refiners replaced Middle East supplies with alternatives from Russia, the US, Oman, West Africa and South America,” the HSBC report stated.HSBC also noted that Russian crude remains attractive because it continues to trade at a discount to Brent crude, while improved export availability from Russia has increased supplies for overseas buyers.The report added that although Gulf exports are recovering following the reopening of the Strait of Hormuz, Asian refiners, including those in India, are unlikely to significantly raise purchases immediately as they have already secured cargoes for July and August and are entering planned maintenance periods.India has steadily expanded purchases of Russian crude since global energy trade flows were reshaped by the Ukraine conflict.According to a report by the Centre for Research on Energy and Clean Air (CREA) earlier this month, India remained the world’s second-largest buyer of Russian fossil fuels in May, with Russian crude accounting for about 83 per cent of its fossil fuel imports from Russia.India’s strategy of relying on discounted Russian barrels has further intensified in June, helping refiners maintain stable crude supplies while reducing exposure to geopolitical uncertainties in the Middle East.
