Russian crude supplies to India hit a record high of 1.95 million barrels per day (bpd) in May, while imports from Iraq and Saudi Arabia fell, industry sources analyzed by Reuters showed.
India, the third largest consumer and importer of oil in the world, buys more than 80% of its oil in foreign markets. After the West imposed sanctions on Russia following its invasion of Ukraine, Indian refiners focused on processing Russian oil.
About 40 percent of India’s crude oil imports came from Russia in May, while imports from Iraq were the lowest in three years and imports from Saudi Arabia were the lowest since September 2021, according to a Reuters analysis.
India imported 801,400 bpd of Iraqi crude last month, down 13.7 percent from April, while supplies from Saudi Arabia fell 15 percent to 616,100 bpd. In general, oil imports to India increased slightly to 4.8 million barrels per day in May.
Analysts expect India’s imports of Russian oil to remain high and the price to be significantly lower than oil from the Middle East.
In April, the buyer’s final price for a ton of Russian oil was about $500, Iraqi oil was $570, and Saudi oil was $637.40.
After increasing purchases of cheap Russian oil, the share of imports from the Middle East – traditionally the main source for India – reached a record low level of 39% in May, against 44% in April. (Agerpress)
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.