India cuts crude oil imports to 12-month low, shocks Russia

India Russia: Last month around January 20, 2024, the news came that India has bought the most crude oil from Russia during the year 2023. In the year 2023, India will buy 16.6 million barrels of crude oil per day from Russia. A year ago in 2022, the number was just 6.51 lakh barrels per day. That means India’s purchase of crude oil from Russia has increased by 155% in 2023 compared to 2022. However, now at the beginning of the new year, a decrease in the arrival of Russian crude oil is being seen in India.

Crude oil imports from Russia fell for the second month in a row in January.

India’s crude oil imports from Russia fell for the second straight month in January to a 12-month low. However, long-term demand still remains. Russia supplied India with 1.2 million barrels of crude oil per day in January, down from 13.2 million barrels in December and 16.2 million barrels in November 2023, according to data from energy cargo tracker Vertexa. However, Russia is still the largest supplier of crude oil to India.

Know the oil import data of Iraq and Saudi Arabia.

According to Vortexa, India imported only 36,255 bpd from Russia in December 2021, while it imported 1.05 million bpd from Iraq and 952,625 bpd from Saudi Arabia.

Long-term demand for Russian crude remains intact.

Imports from Russia hit a record high of 2.1 million barrels per day in June last year, accounting for about 40 percent of India’s total oil imports. Industry officials said long-term demand for Russian crude remains intact.

The purchase of cheap crude oil from Russia will continue.

“A drop one month and a rise the next does not tell the whole story. The reality is that Indian companies will continue to buy Russian crude as long as it makes economic sense,” said an official. Russian crude supply costs are lower than alternative sources, Indian refiners will buy it.

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