Due to supply difficulties in the Middle East and a reduction in worries about US sanctions, India has dramatically increased its imports of crude oil from Russia in recent months. As they secure steady energy sources, Indian refiners are anticipated to sustain strong buy levels throughout the year.
Market data shows that imports from Russia reached their highest level since mid-2023 in March, averaging 1.98 million barrels per day. Demand is expected to increase in the upcoming months even though volumes somewhat decreased in April as a result of maintenance shutdowns at important refineries.
Since the start of the Russia-Ukraine conflict in 2022, India, the third-largest oil importer in the world, has been more dependent on cheap Russian petroleum. This tactic has been further strengthened by current geopolitical tensions, such as disturbances in the Strait of Hormuz.
According to industry experts, India is being pushed to maximize Russian imports due to a lack of alternatives and high worldwide costs. Flexibility has been made possible by the US’s temporary waivers, which let refiners keep making purchases without facing immediate regulatory pressure.
Although there are still difficulties in obtaining reliable supply, India is investigating diversified sourcing, including options from Iran, as worries about energy security increase.
Source – The Economic Times
