Russian Oil Imports Hit 13-Month Peak as Saudi Flows Drop to Decade Low
India has significantly ramped up imports of Russian crude oil in recent months, with shipment volumes touching a nearly one-year high in June driven by record purchases of Moscow's flagship Urals grade. Data from vessel tracking sources show the surge in Russian oil flows coincided with a sharp contraction in supplies from Saudi Arabia last month.
Indian refiners imported around 2.13 million barrels per day of Russian crude oil last month, the maximum level since May of the previous year. The increase of over 7% from May saw Moscow regain its position as India's top oil supplier, accounting for approximately 45% of the country's total imports. A major factor behind the spike was a massive 161 million barrel purchase of Urals, setting a new all-time high.
The rise in discounted Russian supplies has significantly impacted inbound shipments from Saudi Arabia, traditionally one of India's largest providers. June volumes from the Gulf kingdom slid over 25% month-on-month to 410,000 barrels daily, the weakest level in over ten years. This can be attributed to robust availability and ongoing price advantage of Russian barrels outweighing competing Middle Eastern grades.
Lower purchases were also recorded from other traditional partners like Iraq, with supplies declining to 800,000 barrels per day—the minimum since February of 2024. Only relatively cheaper American light crude saw higher imports, with the US emerging as India's fourth biggest source last month.
The data highlights how refiners have capitalized on incentives like price discounts to bolster Russian crude purchases and rework their sourcing strategy. With cost considerations paramount for the world's third largest oil consumer, discounted Russian oil looks set to maintain its strong footing in India despite some narrowing differentials in recent times.
