Russia rose to turn out to be India’s second largest provider of oil in May, pushing Saudi Arabia into third place however nonetheless behind Iraq which stays No. 1, information from commerce sources confirmed.
In May Indian refiners obtained about 819,000 barrels per day (bpd) Russian oil, the very best up to now in any month, in comparison with about 277,00 in April, the information confirmed.
Western sanctions towards Russia for its invasion of Ukraine prompted many oil importers to shun commerce with Moscow, pushing spot costs for Russian crude to report reductions towards different grades.
That offered Indian refiners, which not often used to purchase Russian oil because of excessive freight prices, a possibility to snap up low-priced crude.
Russian grades accounted for about 16.5% of India’s general oil imports in May, and helped elevate the share of oil from the C.I.S. nations to about 20.5%, whereas that from the Middle East declined to about 59.5% %, the information confirmed. The share of African oil in India’s crude imports final month surged to 11.5% from 5.9% in April, the information confirmed.
“Diesel is calling the tune … if you want to boost production of diesel and jet fuel then you need Nigerian and Angolan grades. China has cut imports of Angolan grades because of COVID-related shutdowns so some of these barrels are going to Europe and some to India,” stated Ehsan Ul Haq, analyst with Refinitiv.
He stated aside from availability of cheaper Russian barrels, increased official promoting costs of Middle Eastern oil additionally pushed Indian refiners to purchase Nigerian crude.
India’s oil imports in May totalled 4.98 million bpd, the very best since December 2020, as state refiners raised output to satisfy rising native demand whereas non-public refiners turned focus to achieve from exports, the information confirmed.
India’s oil imports in May have been about 5.6% up from the earlier month and about 19% from a yr earlier, the information obtained from sources confirmed.
India has defended its buy of “cheap” Russian oil saying imports from Moscow made solely a fraction of the nation’s general wants and a sudden cease would drive up prices for its shoppers.
Higher oil imports from Russia, curbed OPEC’s share in India’s general imports to 65% in April.
Source: www.financialexpress.com”