India ups crude oil imports from the US as Russian shipments stagnate




India’s new bonhomie with the US is evident even in the oil purchases of late. As crude oil imports from Russia exhibit signs of stagnation, India has gradually increased its shipments of the critical commodity from the US, which is clawing back its lost share.

According to energy intelligence firm Vortexa, India’s crude oil imports from Russia fell 8 per cent m-o-m to 1.798 million barrels per day (mb/d) in June, from a record 1.96 mb/d in May, reportedly due to voluntary production cuts by the world’s second largest crude oil producer.

Steady rise

On the other hand, Vortexa’s data also show that imports from the US have been inching up consistently since March this year. In January 2023, India imported 406,000 barrels per day (bpd) from the US, which nosedived to 244,000 bpd a month later, and then fell steeply to 100,000 bpd in March.

However, in April, India’s imports from the US appreciated to 119,000 bpd and then to 138,000 bpd a month later. The shipments then grew a healthy 62 per cent to hit 224,000 bpd in June.

According to OPEC’s monthly oil market report, total India’s crude imports has slipped from the highs seen in February to an average of 4.8 mb/d in April. This represents a m-o-m decline of 55,000 bpd, or about 1 per cent. On a y-o-y basis, crude inflows fell 0.4 mb/d, or around 8 per cent.

As per the Petroleum Planning and Analysis Cell (PPAC), India’s cumulative crude oil imports during April and May stood at almost 40 million tonnes (mt), of which 6.9 per cent was from North America. Before the Russia-Ukraine conflict began in February 2022, North America’s share was around 14 per cent. India began importing crude oil from the US in the second half of 2017.

Diversifying sources

As per Commerce Ministry data, India imported $4.9 billion worth of crude oil from the US in FY20, making it India’s fourth top supplier. In FY21 and FY22 as well, the US was the fourth top crude oil supplier with cargoes worth $5.40 billion and $11.32 billion, respectively. It took the fifth spot in FY23 with crude exports of $10.18 billion.

S&P Global Commodity Insights, in a January 2023 report, said the US’ share in India’s crude oil basket rose from 5-6 per cent in April 2022 to around 10 per cent in November 2022. Similarly, a joint study by KPMG India and American Chamber of Commerce (Amcham) India said triggered by the Organization of the Petroleum Exporting Countries’ (OPEC)+ announcement on cutting crude oil output, India is looking to diversify its crude sources and is majorly focusing on limiting its reliance on Middle Eastern crude.

This state of affairs has largely benefited the import of crude from the US which, of late, has witnessed an uptick, the study, released in May 2023, added.


Source link

━ more like this

China Sanctions: China sanctions US firm Kharon, provider of research on Xinjiang

BEIJING: China's foreign ministry said it had sanctioned Kharon, a US firm founded by former treasury department officials that provides data to companies...

Bry-Air Conducts the 13th Biannual Eye Camp to Support Underprivileged People Suffering from Eye-Related Problems

Bry-Air Conducts the 13th Biannual Eye Camp to Support Underprivileged People Suffering from Eye-Related Problems Staying true to its commitment to enhancing lives through CSR...

Ukraine: Ukraine claims destruction of major Russian navy vessel in Crimea

Ukraine's air force said on Tuesday that it had destroyed a major Russia landing ship stationed in the Crimean waters, after the Russian-installed...

Mavericks’ Luka Doncic reaches 10,000-point career milestone

Mavericks star Luka Doncic reached 10,000 career points during the first quarter of Dallas’ road game against the Phoenix Suns. Doncic reached 10,000...

Indonesia nickel plant explosion death toll rises to 18

JAKARTA: The death toll after an explosion at a Chinese-funded nickel-processing plant in eastern Indonesia over the weekend has risen to 18 with...