Maritime data from Indian energy sector sources to Reuters indicated that India's imports of Russian oil reached an all-time high in June, despite the increase occurring at the slowest pace since October, suggesting that New Delhi's demand for Russian oil may have peaked. Indian refineries, the third-largest importers of Russian oil in the world, are inclined towards Russian crude, which is being sold at discounted prices due to Western nations' reluctance to purchase it following Russia's invasion of Ukraine.
However, Russian oil is beginning to lose its appeal among Indian refiners due to declining discount levels and emerging issues with payment settlements, prompting Indian refineries to seek alternative sources in the Middle East. Data showed that New Delhi purchased nearly two million barrels per day of Russian crude in June, a slight rise from the previous month. Before the Ukraine war, India rarely bought Russian crude due to high shipping costs.
According to the data, India's imports of Russian oil in June surpassed its collective purchases from Iraq and Saudi Arabia, the second and third-largest suppliers to New Delhi. The United States ranked as the fourth-largest supplier to India, resulting in a drop of the UAE to the fifth position.
Data shows that in terms of market share, Russia supplied India with about 42 percent of its crude oil imports from April to June, representing the first quarter of the Indian fiscal year, while the Middle East's share rose to around 41 percent after a decline in the previous three months.
The data also indicated that imports from the Middle East dropped by about 34 percent in the quarter ending in June compared to the previous year, while imports from the Commonwealth of Independent States, which includes Azerbaijan, Kazakhstan, and Russia, nearly tripled. The decline in imports from the Middle East resulted in a decrease in the share of the Organization of the Petroleum Exporting Countries (OPEC) in India's total crude imports.
