India: 5% of crude imports in Apr 22 sourced from Russia

  • Russian-origin crude made up 5% of India’s total oil imports in Apr 22 for the first time, rising from under 1% in 2021 and 1Q22, as refiners chased cheaper oil amid expanding demand and spiralling prices, according to S&P Global Market Intelligence.
  • “As of 9 May 22, almost 10 million barrels of crude loading from Russia-including 970,000 barrels of Kazakhstan’s CPC Blend-have discharged in India in May 22,” the S&P Global Market Intelligence said.
  • “Another 16 vessels with 13 million barrels are currently indicating India as their destination and are expected to arrive in the next four weeks.”
  • “Refiners have been highly attracted to discounts for Russian-origin cargoes and India has been a major alternative destination for Urals crude that would typically have been sold to refiners in Europe,” said Yen Ling Song, associate director at S&P Global Market Intelligence.
  • “Conversely, stronger demand from European end-users for other Atlantic Basin crudes-to replace Russian cargoes-pushed up these procurement costs, and India has instead turned more to the Middle East in the last month.”
  • India’s crude oil imports crossed 4.8 million barrels per day in Apr 22, the highest on record, with higher Mideast and Russian volumes displacing cargoes from further afield, such as the US, Canada and West Africa, as per S&P.

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