Indian imports of Russian crude oil have rebounded significantly in March, with lower prices making it more economical for refiners, the Financial Express reported on Monday.
The cheaper prices have also led to an increase in the availability of non-sanctioned tankers, making it easier for Indian companies to transport oil. As a result, India’s Russian oil imports have rebounded in March after a decline in previous months, the report added.
According to data from Kpler, India’s Russian oil imports increased significantly in the first 21 days of the month, averaging 1.85 million barrels per day (bpd). This represents a substantial rise from the 1.47 million bpd imported in February and the 1.64 million bpd imported in January, according to Kpler data.
Russian oil accounts for over 35% of India’s total oil imports in March, up from approximately 31% in February, the report added. The surge has helped Moscow solidify its position as a major oil supplier to Asian country.
Following the introduction of further Western sanctions against Moscow in February, India vowed to continue to buy Russian oil as long as it was sold below a $60 per barrel price cap, transported on non-sanctioned tankers, and the transaction did not involve sanctioned companies or individuals, according to the Financial Express.
“This surge in volumes in March comes as Russia’s domestic crude demand plummeted in February and March due to Ukrainian drone attacks on several refineries…The rising availability of Russian crude exports has driven down Urals (Russia’s flagship oil grade) prices, with average prices assessed at $59.9 per barrel in February and $56 per barrel so far in March. This suggests that Urals crude remains below the G7 price cap, enabling buyers and sellers to utilize Western shipping and insurance services for transportation,” Kpler analyst Sumit Ritolia was cited as saying by the Financial Express.
According to Bloomberg, Indian crude oil imports from Russia fell last month to their lowest level since January 2023, with the decline occurring just weeks after the US imposed sanctions on several Russian energy companies and multiple oil tankers. The sanctions imposed by the US and UK targeted Russian oil producers, including Gazprom Neft and Surgutneftegas, as well as 183 tankers involved in transporting Russian crude oil.
The measures have had an impact on both India, the world’s third-largest oil importer, which heavily relies on seaborne crude shipments, and China, the world’s largest importer.
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Speaking in New Delhi in February, Russian First Deputy Energy Minister Pavel Sorokin stressed that Moscow would continue to supply oil to global markets, including India. “We are pragmatic. We value our relationships, and we will continue to supply the market. Our resources are competitive from an economic standpoint,” Sorokin stated.
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