India witnessed a 4% decline in crude oil imports from Russia for the second consecutive month in November, importing 1.48 million barrels per day (bpd) compared to 1.55 million in the previous month, as reported by energy cargo tracker Vortexa.
Despite this decrease, Russia remains the top supplier of crude oil to India. The decline is attributed to narrowing discounts on Russian oil and challenges faced by refiners due to the cost of oil surpassing the price cap, causing payment issues.
In October, India experienced a 4% decline in oil imports from Russia. However, Russia still maintains its position as India’s primary crude oil supplier. Meanwhile, crude oil imports from Iraq, India’s Middle-East supplier, saw a sharp increase to 1.03 million bpd in November, up from 786,000 bpd in the previous month. In November, imports from Iraq constituted 23% of India’s total oil imports, while Russian oil accounted for 33%.
Russia has become a significant source of crude oil for India since the Russia-Ukraine war, diverting its oil to Asian countries at discounted rates following sanctions imposed by the European Union and the US. Russia has surpassed Saudi Arabia and Iraq to become India’s largest crude oil supplier since sending troops to Ukraine in February 2022.
Discounts from Russia have reduced in recent months, causing the cost of oil to exceed the $60 per barrel price cap. India primarily benefits from discounts on Russian Urals, the sour grade of crude, which constitutes the majority of imports from Russia.
In November, India imported 1.21 million bpd of Russian Urals, with total crude oil imports reaching 4.5 million bpd from Russia, Iraq, Saudi Arabia, the UAE, and other countries.
