India’s import of Russian crude touches record high in May

India's import of cheap Russian oil scaled another record in May and is now more than the combined oil bought from Saudi Arabia, Iraq, UAE and the US, industry data was quoted by media reports.

India took 1.96 million barrels a day from Russia in May, 15 per cent more than the previous high in April, according to data from energy cargo tracker Vortexa.

Russia now makes up for nearly 42 per cent of all crude oil India imported in May. This is the highest share for an individual country in recent years. The rise in Russian share came at the cost of traditional suppliers in the Middle East.

Shipments from Saudi Arabia slipped to 560,000 tonnes - the lowest since February 2021, according to figures from the shipping analytics company.

For the eighth straight month, Russia continued to be the single largest supplier of crude oil, making up for 42 per cent of all oil India imported. Crude oil is converted into petrol and diesel at refineries. The imports from Russia are now more than the combined purchases from Iraq and Saudi Arabia -- India's biggest suppliers in the last decade -- as well as UAE and the US.

From a market share of less than 1 per cent in India's import basket before the start of the Russia-Ukraine conflict in February 2022, Russia's share of India's imports rose to 1.96 million barrels per day in May, taking a 42 per cent share.

India's imports of Russian crude continue to test new highs, reaching almost 2 million bpd in May. Refiners have tested and gained confidence in processing Russian crude, and their voracious appetite for "Russian crude is likely to grow as much as they have room to back off spot crude purchases," said Vortexa's head of Asia-Pacific analysis, Serena Huang.

The average cost of Russian crude including freight costs landing on Indian shores in April was 68.21 US dollars a barrel - the lowest level since the Ukraine war.

The average cost of Saudi Arabian crude sent to India in April was 86.96 US dollars a barrel, while Iraqi oil was priced at  77.77 US dollars a barrel. Russia is selling record amounts of crude oil to India to plug the gap in its energy exports after the European Union banned imports in December.