In the last two months, India’s crude oil imports from Russia have declined. However, the overall import of crude oil has also fallen. In August, India imported 7,38,024 barrels per day from Russia, 18 per cent lower than in July, according to a report by Economic Times (ET).

The per day import figure is 24.5 per cent lower than in June. However, imports from China have remained stable during the same period.

India’s overall imports have declined in the last few months, the report added. At 40,49,167 barrels per day, the oil imports were 13 per cent lower than in July and 15 per cent lower than in June.

“Since May, we have seen Russian crude imports into India making up around 20 per cent of the country’s total crude imports, displacing conventional supplies from the Middle East, West Africa, and the US. I definitely see room for more Russian crude heading to India in the coming months, as the EU ban on Russian crude imports draws near,” Serena Huang, an analyst at Vortexa told ET.

Even as the European Union (EU) is mulling over a ban on Russian oil, India is gaining from the discounts offered by the country. As of August, India is receiving oil from Russia at a discount of $5-6 per barrel.

In August, Russia was India’s third-largest oil supplier, meeting 18.2 per cent of all the country’s oil needs. Saudi Arabia was India’s largest oil supplier at 20.8 per cent and Iraq at 20.6 per cent. Supplies from Iraq fell 18 per cent in August, as compared to July.

Western countries have been pressurising India to cut its oil imports from Russia since the inception of the Russia-Ukraine war. However, the US has proposed a price cap on Russian oil.

Source: Hellenic Shipping News