Russia's share of India's June oil imports surges to record

Russia continues to be 2nd largest oil supplier after Iraq

India's oil imports from Russia surged to a record of about 9,50,000 barrels per day (bpd) in June, accounting for almost a fifth of overall imports by the world's third largest oil consumer, data provided by trade sources showed.

Indian refiners have been snapping up Russian oil sold at hefty discounts to Brent and Middle East staples after some Western companies and countries shunned purchases from Moscow following its invasion of Ukraine on February 24.

India shipped in about 4.8 million bpd of oil in June, down 3.8% from May but about 23% higher than a year earlier, the data showed. Last year, India's oil imports were low as fuel demand was hit by a second deadly coronavirus wave.

Oil imports from Russia rose 15.5% in June from May, while those from Iraq and Saudi Arabia dropped by 10.5% and 13.5%, respectively, dragging the share of the Middle East to 56.5% from 59.3%, the data showed.

Russia continued to be the second largest oil supplier to India after Iraq, while Saudi Arabia remained in third spot for the second month in a row.

The higher oil intake from Russia raised its share of India's overall imports to 19.8% from 16.4% in May, and that of Commonwealth of Independent States (CIS) countries to about 24% from 20.3% in May, the data showed.

Cheaper Russian oil is reducing losses for State-run Indian refiners selling fuel at lower prices on the domestic market, while adding to profits for private firms Reliance Industries Ltd. and Nayara Energy, which export most of their refined products.