In May, India imported 1.72 million barrels of oil daily (bpd) of crude oil from Russia, a slight decrease from 1.78 million bpd in the prior month.
Decline in Imports from Russia and Saudi Arabia
India’s crude oil imports from Russia and Saudi Arabia saw a decline in May 2024.
According to energy cargo tracker Vortexa, India imported 1.72 million barrels per day (bpd) of crude oil from Russia in May, slightly down from 1.78 million bpd in April. Similarly, imports from Saudi Arabia dropped to 606,000 bpd in May from 672,000 bpd in April.
Increased Imports from the US and Iraq
Despite the decline in imports from Russia and Saudi Arabia, India’s overall crude oil imports remained stable due to increased purchases from other countries.
Notably, oil imports from the United States doubled in May, reaching 224,000 bpd from 111,000 bpd in April. Additionally, Iraq supplied 935,000 bpd in May, up from 806,000 bpd in April. Imports also increased from other suppliers, including the UAE and Venezuela.
Total Imports Remain Stable
India’s total crude oil imports stood at 4.54 million bpd in May, slightly down from 4.58 million bpd in April. This stability reflects the diversification of India’s oil sources amidst fluctuating supplies from key exporters like Russia and Saudi Arabia.
Supply Cuts and Production Increases
The reduction in imports from Russia and Saudi Arabia may be attributed to supply cuts announced by these countries.
On June 2, Saudi-led OPEC+ announced it would maintain voluntary cuts of 2.2 million bpd until September 2024, followed by a phased reduction over the next year.
Conversely, the United States has been ramping up oil production, and Iraq, despite pledging to reduce supply, has experienced an increase in production.
Slump in Sour Grade Russian Crude Imports
Another notable trend in May was the decrease in India’s imports of the sour grade of Russian crude oil, particularly the Russian Urals.
Previously, the Urals had been a popular choice for India due to significant discounts. However, this trend appears to be shifting as India diversifies its import sources.
In summary, while India saw a decline in crude oil imports from traditional suppliers Russia and Saudi Arabia in May, it compensated by increasing imports from the United States, Iraq, and other countries, maintaining overall import levels.
This shift highlights India’s strategy to ensure a stable supply amid global market fluctuations and production adjustments by major exporters.
