India's Russian crude imports hit record high in July

India's imports of Russian crude oil rose to a record 2.8 million barrels per day (bpd) in July, accounting for more than half of the country's total crude purchases, even as refiners increased imports from Middle Eastern suppliers following the normalization of oil flows through the Strait of Hormuz.

According to ship-tracking data from Kpler, India imported just over 5 million bpd of crude oil in July, slightly higher than in June, Caliber.Az reports, citing The Times of India.

Russian supplies increased from 2.7 million bpd in June to 2.8 million bpd, raising Russia's share of India's crude imports to 55.5% — the highest level since New Delhi began purchasing large volumes of discounted Russian oil after the outbreak of the war in Ukraine in 2022.

Nikhil Dubey, lead analyst at Kpler, said Russia had once again demonstrated its reliability as a supplier amid geopolitical tensions.

"Amid the evolving geopolitical situation — earlier around the Strait of Hormuz and now around the Bab el-Mandeb Strait — Russian crude supplies have once again proven to be among the most reliable," Dubey remarked.

He added that drone strikes on Russia's refining infrastructure had reduced domestic refining activity, leaving more crude available for export.

Despite the increase in purchases, Indian refiners noted that discounts on Russia's Urals crude have nearly disappeared.

The July figures also indicate that Indian refiners have resumed buying more crude from Gulf producers after supply disruptions during the regional conflict.

Saudi Arabia recorded the largest increase among major suppliers, with exports to India rising to 420,000 bpd in July from 290,000 bpd in June.

Imports from Iraq nearly doubled to 130,000 bpd from 67,100 bpd a month earlier, marking the third consecutive monthly increase since supplies resumed in May after dropping to zero in April.

Kuwait also returned to India's import mix, supplying 51,600 bpd after recording no exports to the country between April and June.

The recovery in imports from Iraq and Kuwait, along with higher purchases from Saudi Arabia, suggests that crude flows through the Strait of Hormuz have largely normalised, allowing Indian refiners to increase sourcing from Gulf producers.

Among other suppliers, imports from the United Arab Emirates declined to 460,000 bpd in July from 510,000 bpd in June, although the UAE remained India's second-largest crude oil supplier.

India's liquefied petroleum gas (LPG) imports remained heavily dependent on the United States, which supplied more than 900,000 tonnes, or about 73%, of the more than 1.2 million tonnes imported during the month.

By Bakhtiyar Abbasov