India received 1.36 million barrels of crude oil in a day from Russia in March, according to energy cargo tracker Vortexa. This was 7 percent higher than in the previous month, as India had imported 1.27 million barrels per day (bpd) from Russia in February.
India’s imports from Russia exceeded supplies from other countries, including Iraq and Saudi Arabia, in March. India’s total import of crude oil increased to 4.89 million bpd during the month from 4.41 million bpd in February, according to information from Vortexa. Currently, crude oil prices are hovering around $85 per barrel, but have not crossed the $90-per-barrel mark.
Imports from Russia have been high despite US sanctions on one of the country’s biggest tanker groups late in February. To reduce Russia’s revenue from oil sales, the US had imposed sanctions on Sovcomflot, a Moscow-based shipper, for allegedly violating the price cap on Russian exports. According to a Reuters report, India’s Reliance Industries had thereafter halted buying Russian oil loaded on tankers operated by Sovcomflot.
Meanwhile, sour-grade oil from the Urals was India’s major import from Russia. Other Russian oil grades imported by India include Varandey, Siberian Light and Sokol (from Sakhalin I).
Among India’s traditional Middle-Eastern suppliers, Iraq supplied 1.09 million bpd of crude oil in March, a big jump from 76,000 bpd in the previous month. However, the equation reversed for Saudi Arabia with India’s imports standing at over 76,000 bpd in March, a decline from 82,000 bpd in February.
India, one of the largest energy consumers in the world, has ramped up imports of crude oil from Russia ever since it invaded Ukraine in 2022. Prior to the tensions between the two countries, India used to get only 0.2 percent of its total crude oil imports from Russia.
The discounted oil offered by Moscow and India’s large appetite for the commodity amid low domestic production, led the Indian government to buy oil from Russia despite pressure from Western nations. Indian government officials now argue that the country’s purchase of oil from Moscow helped in keeping global crude prices in check.
On the other hand, India’s imports of crude oil from suppliers such as Saudi Arabia and Iraq have declined due to the higher imports from Russia and lower output from these Middle-Eastern countries. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, have reduced output to support crude prices. The oil cartel has decided to extend voluntary oil supply cuts of 2.2 million barrels per day into the second quarter of 2024.
