India imported 4.93 million barrels per day (bpd) of crude oil in June, the highest volume for the month on record, overcoming the impact of the West Asia crisis, data compiled by marine intelligence firm Kpler showed.
During the period, Russia remained the top supplier to India, exporting 2.6 million bpd in June, Sumit Ritolia, an analyst with Kpler said.
Russian supplies made up for more than half of India’s overall imports in June, up from 36.5 per cent in May when it had imported 2.13 million bpd from Moscow, Kpler data revealed.
The ability to sustain record import levels while increasing purchases from Russia underscores the success of Indian refiners in diversifying supply and managing refinery economics, Ritolia argued.
“India’s crude imports have quietly demonstrated remarkable resilience. Over the past 100 days, India has arguably been one of the best-positioned major importers, successfully maintaining crude inflows through proactive diversification and procurement strategies,” he said.
Following US-Israel’s attack on Iran, shipping of petroleum products through the Strait of Hormuz had come to a standstill. India, which imports 90 per cent of its oil requirement, was badly hit. However, the data showed Indian refiners quickly able to diversify their procurement away from the West Asia to keep the mill rolling.
Iran outlook
Kpler’s Ritolia did not expect a ‘meaningful resumption’ of Iranian crude imports into India in the near term.
While one or two opportunistic cargoes could arrive in July or August, refiners are already largely covered for feedstock requirements through early August, he observed, adding that any sustained return of Iranian crude would depend on the regulatory environment after the current sanction waiver expires on August 21.
Rising exports from Africa, Russia, and Venezuela, together with higher OPEC+ production and continued crude flows through the Hormuz, should provide ample sourcing options.