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Share of Russia crude in oil imports falls to 34 per cent in August - The Economic Times

The Economic Times · last updated September 3, 2023 – 5:50 PM

Oil Imports: Share of Russia crude in oil imports falls to 34 per cent in August - The Economic Times

Russia's share in

India's

crude oil imports fell to 34% in August from 42% in July as state-run refiners sharply reduced imports from Russia.

Supplies from Russia fell 23% month-on-month to 1.47 million barrels per day (mbd) in August, even as India's overall crude imports fell 5% to 4.35 mbd, according to energy cargo tracker Vortexa. Russia's seaborne crude exports to China, however, increased to 1.4 mbd in August from 1.3 mbd in July.

Indian state refiners took 852,000 barrels per day of Russian oil in August, 30% less than in July while private sector refiners' intake of 617,000 barrels per day was 13% lower than in July.

Imports from Russia fell due to the planned maintenance work at some refineries in India as well as a reduction in the availability of Russian supplies, analysts said. "There is no indication that Russia's crude exports will see a rebound in the near term, which means that India's imports of Russian crude will likely remain subdued," said Serena Huang, analyst at Vortexa.

Russian exports are shrinking as the country is focused on slashing crude production and meeting its increased domestic fuel demand, an industry executive said. The key beneficiary of a drop in Russian supplies to India was Saudi Arabia, which exported 820,000 barrels per day to Indian refiners in August, 70% more than in July. This boosted Saudi Arabia's share in the Indian crude market to 19% in August from 11% in July. The share of other top suppliers barely changed, with Iraq at 20%, the UAE at 6% and the US at 5%.

"Russian

Urals discounts to dated Brent have narrowed in recent weeks as a result of lower supplies, which has likely dampened the appetite of Indian refiners as well," Huang said.

Urals, the flagship Russian grade, comprised 73% of Russian supplies imported by India in August, lower than 83% in July. The Urals had mostly traded below the G7-imposed price cap of $60 per barrel but has breached the cap in recent weeks. Urals is trading around $69 per barrel while the international benchmark Brent is around $88.

Indian state refiners take Russian oil on a delivered-at-port basis, leaving the suppliers with transportation and insurance risks, which increase when the oil is priced above the cap.

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Share of Russia crude in oil imports falls to 34 per cent in August - The Economic Times

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