Russia has been India’s top supplier of oil since the start of the year. In July, it surpassed Iraq and Saudi Arabia in terms of energy supplies, as 1.9 million barrels per day (bpd) were imported from Russia to India.
Russia Becomes India's Top Oil Supplier
As per Vortexa, a firm tracking energy markets, India's imports in the month of July were slightly higher as compared to June, when 1.8 million barrels per day were imported.
The imports in June dipped compared to May, when 1.96 million barrels a day were imported.
Despite the slight decline in oil supplies in May, Russian crude oil imports in India were more than the combined imports from Iraq and Saudi Arabia.
Oil supplies from Russia to China and India
© Sputnik
How Much Oil Does Russia Supply to India?
On the basis of details shared by India’s Trade Ministry, Russia has been the largest oil supplier to India since the beginning of this year, and now accounts for around 40 per cent of total crude imports.
According to reports, Russia now exports a whopping 46 per cent of total oil to India, while this was less than two per cent before February 2022.
The import of Russian oil ticked approached the one million barrels per day mark in December last year, the tracking firm Vortexa revealed.
Meanwhile, imports of Russian crude oil climbed to 1.4 million barrels per day in January, further growing to 1.6 million barrels per day in February. In March, the import of crude oil from Russia was reported to be 1.64 million barrels per day.
In March, Russia’s largest oil producer, Rosneft, inked an agreement with the Indian Oil Corporation (IOC) to substantially increase oil supplies as well as diversify the grades to India.
The deal was signed when Rosneft’s chief executive Igor Sechin paid a working visit to India.
Earlier, in December 2021, the IOC had signed a deal with Rosneft to purchase up to two million tonnes of crude oil.
India's crude oil import from Russia marginally increased in April again, as it purchased 1.68 million barrels per day, while it skyrocketed by 15 per cent in May when the South Asian country purchased 1.96 million barrels per day.
As per industry data, the import of Russian crude oil in May by India was more than that of the combined oil purchased from Saudi Arabia, Iraq, the UAE, and the US.
The oil purchase further touched a new record in June, when India bought a staggering 2.2 million barrels per day.
India's Oil Imports From Russia Cross Historic 2Mln Bpd
© Sputnik
Reasons Behind Surge in Oil Imports from Russia
The crude oil purchase has been soaring to record levels since the West imposed several sanctions on Russia.
Notably, Western countries implemented a price cap on Russian crude oil in December, while the US and Canada banned the import of Russian oil and the European Union prohibited imports by sea.
However, unfazed by the price cap and sanctions, Russian President Vladimir Putin in the same month signed a decree banning oil supplies to countries that had introduced price caps.
The oil import to India has increased since then.
Experts are of the view that in the near future, demand from India is likely to see a dip due to infrastructural and political constraints, along with limitations to Russian oil flows.
While talking to an Indian news website, one expert said that 2.2 million barrels per day import will be the peak this year, and going forward there will be a slight dip as Indian refineries have hit a “seasonal peak”.
Citing the reason behind the downward trend in demand, another expert said this would be the first time this year that Indian refineries undergo maintenance.