New Delhi: India’s crude oil imports from Russia touch 12-month low in January. This is for second straight month that the crude oil import is falling. Russia is the top crude oil supplier of India. India is world’s third-biggest oil importer and consumer of petroleum products.
As per preliminary ship tracking data, tighter Western sanctions and boosted imports of Iraqi oil are the main reason for this drop in import.
Imports from Russia declined 4.2% to 1.3 million barrels per day (bpd), according to LSEG data. Data from ship tracking agency Vortexa showed a slide of 9% to 1.2 million bpd.
‘The narrowing of Russian crude discounts versus Middle Eastern crude, recent U.S. sanctions on shipowners carrying Russian crude above the price cap and rising tanker premiums as a result of the Red Sea attacks have made Russian crude less attractive for Indian refiners in recent months,’ said Serena Huang, Vortexa’s head of APAC analysis.
Also Read: BSF seizes 3 kg heroin in Gurdaspur
Last year, India emerged as a top buyer of sea-borne Russian oil sold at a discount after Western countries halted imports following Russia’s invasion of Ukraine. However, US in December imposed sanctions on ships and vessel operators carrying Russian oil sold above a $60-per barrel cap set by the Group of Seven nations. Banks and service providers have been asked to ensure cargoes do not breach the price limit. Following the sanctions, several tankers that were meant to deliver Sokol crude to India have been diverted.
According to LSEG data, India is scheduled to get at least five cargoes of Sokol crude in February, compared with none in January.
Here is a table of India’s preliminary imports from its top three suppliers. Volumes are in 1,000 bpd.
Russia 1209 1328 -9.0% 1289 1345 -4.2%
Iraq 1112 985 12.9% 1214 1024 18.5%
Saudi Arabia 659 668 -1.3% 668 639 4.5%
Post Your Comments