India’s dependence on Russian crude hit a record level in July, with shipments from Russia making up 50.83% of the imports of the world’s third-largest oil importer and consumer (about 2.47 million barrels per day) as per data from trade sources.
India's July imports of Russian oil were up 62.4% from a year earlier, but down 4.8% from June's record figure of 2.6 million bpd, the data showed.
In January, Indian refiners began cutting back on their imports of Russian oil to avoid higher U.S. tariffs, even as New Delhi continues to negotiate a trade deal with Washington.
However, supply disruptions in the Middle East caused by the Iran war forced Indian refiners to continue purchasing Russian oil.
However, India’s purchases of Russian crude now face uncertainty after the U.S. Senate passed legislation this month to impose 100% tariffs on buyers of Russian oil, intensifying economic pressure on Moscow over its 2022 invasion of Ukraine.
The House of Representatives has yet to approve the measure.
Russia accounted for a record 43.25% of India’s crude oil imports in the first four months of the financial year starting in April, with volumes averaging more than 2 million barrels per day, up from roughly 37% during the same period a year earlier, data showed.
This change occurred mainly at the cost of Middle Eastern suppliers, whose portion of India’s crude oil imports dropped to around 30% between April and July, down from 43% during the same period a year earlier.
According to the data, Latin America’s share of oil increased from 3.5% to 12.7%, largely driven by higher purchases from Brazil and Venezuela.
India depends on imports for over 90% of its crude oil requirements, leaving it exposed to potential disruptions in the global oil trade.
Russia remained India’s top crude oil supplier between April and July, while the United Arab Emirates surpassed Iraq to become the second-largest source, according to the data.
Since leaving OPEC in April, the UAE has been offering substantial volumes via spot tenders, enabling Indian refiners to boost their purchases. In the previous year, the UAE ranked as India’s fourth-largest supplier.
