India Crude Imports Hit June Record With Russian Share at 54 Percent

Indian refiners imported about 5 million barrels per day of crude oil in June, the highest monthly volume ever recorded for that month. Of the total, 2.6 million barrels per day arrived from Russia, equal to 54 percent of India’s imports and the largest Russian share in bilateral trade to date.

The increase offset a sharp reduction in supplies that normally move through the Strait of Hormuz. India’s strategic petroleum reserve system can cover only nine to ten days of demand even when full, limiting the buffer available during supply interruptions.

OilPrice.com reported that Middle Eastern barrels are returning to the market with discounts. The same report stated that Russian crude has become a standing element of India’s energy-security planning. Further changes to purchase patterns may occur if Gulf supplies stabilize at lower prices.