Russia’s share in India’s
crude oil imports
has increased significantly to nearly 40% in April, up from 30% in March. This brings it close to its peak of 42% last July. The increase is driven by
Indian refiners
’ efforts to manage rising
global oil prices
by sourcing discounted Russian oil, which helps reduce overall crude purchase costs.
According to
energy cargo tracker
Vortexa data quoted in an ET report, Indian refiners imported 1.78 million barrels per day (mb/d) of crude oil from Russia in April, a 19% increase from March.
This amount is more than the 1.27 million barrels per day that China imported and significantly higher than Europe’s 396,000 barrels per day of seaborne
Russian crude
during the same period.
Russia was India’s largest crude oil supplier in April, delivering more than the combined total of the next three top suppliers—Iraq, Saudi Arabia, and the UAE. Despite the rise in Russian imports, India’s overall crude oil imports fell by 8% from March to April, totaling 4.5 mb/d. During this time, Iraq’s imports to India dropped by 31% to 776,000 barrels per day, and Saudi Arabia’s decreased by 6% to 681,000 barrels per day. The UAE’s exports to India fell by 40%, and US imports dropped by 15%.
In April, Iraq’s share of India’s crude oil imports dropped to 17%, down from 23% in March. The UAE’s share also fell, decreasing from 9% to 6%. Meanwhile, Russia’s share in April rose above the 2023-24 average of 35%, reflecting the increasing preference for Russian crude among Indian refiners.
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India’s imports
of Russian crude oil in April reached a nine-month high. According to Vortexa analyst Serena Huang, this was due to increased Russian crude exports in February and March, along with reduced imports by Chinese refiners, which freed up more oil for India.
An industry executive explained that rising global
oil prices
are prompting Indian refiners to buy more Russian oil because it is cheaper, helping them cut their overall crude purchase costs. Higher oil prices are also affecting Indian refiners’ profits. Indian Oil, the country’s largest refiner, reported a 52% drop in its fourth-quarter earnings.
The international benchmark Brent crude is trading around $85 per barrel, influenced by physical demand-supply dynamics and geopolitical factors, including conflict in the Middle East.
Urals, the main type of Russian crude oil, is sold at a discount of $7-8 per barrel compared to Brent, when priced free-on-board (FOB). When delivered to the port, the discount reduces to about $2-3 per barrel, which is the usual way Indian refiners buy Russian oil. In April and March, Urals accounted for 89% of India’s Russian oil imports.
Indian private sector refiners, Reliance Industries and Nayara Energy, made up 45% of all Russian crude oil imports to India in April. Nayara Energy is partially owned by the Russian energy company Rosneft.
