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NEW DELHI, June 13 (Reuters) – Russia rose to turn out to be India’s second largest provider of oil in Might, pushing Saudi Arabia into third place however nonetheless behind Iraq which stays No. 1, information from commerce sources confirmed.
In Might Indian refiners obtained about 819,000 barrels per day (bpd) Russian oil, the best so far in any month, in comparison with about 277,00 in April, the information confirmed.
Western sanctions in opposition to Russia for its invasion of Ukraine prompted many oil importers to shun commerce with Moscow, pushing spot costs for Russian crude to document reductions in opposition to different grades.
That offered Indian refiners, which hardly ever used to purchase Russian oil because of excessive freight prices, a chance to snap up low-priced crude.
Russian grades accounted for about 16.5% of India’s total oil imports in Might, and helped elevate the share of oil from the C.I.S. international locations to about 20.5%, whereas that from the Center East declined to about 59.5% %, the information confirmed.
The share of African oil in India’s crude imports final month surged to 11.5% from 5.9% in April, the information confirmed.
“Diesel is asking the tune … if you wish to enhance manufacturing of diesel and jet gasoline you then want Nigerian and Angolan grades. China has lower imports of Angolan grades due to COVID-related shutdowns so a few of these barrels are going to Europe and a few to India,” stated Ehsan Ul Haq, analyst with Refinitiv.
He stated aside from availability of cheaper Russian barrels, greater official promoting costs of Center Japanese oil additionally pushed Indian refiners to purchase Nigerian crude.
India’s oil imports in Might totalled 4.98 million bpd, the best since December 2020, as state refiners raised output to satisfy rising native demand whereas personal refiners turned focus to realize from exports, the information confirmed.
India’s oil imports in Might had been about 5.6% up from the earlier month and about 19% from a yr earlier, the information obtained from sources confirmed.
India has defended its buy of “low cost” Russian oil saying imports from Moscow made solely a fraction of the nation’s total wants and a sudden cease would drive up prices for its shoppers. learn extra
Larger oil imports from Russia, curbed OPEC’s share in India’s total imports to 65% in April.
Reporting by Nidhi Verma; enhancing by David Evans
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