Indian Refiners and Crude Oil Procurement
In April, Indian refiners are increasingly sourcing crude oil from Russia and Venezuela due to ongoing tensions in West Asia impacting traditional suppliers like Saudi Arabia and Iraq.
Key Statistics
- India's crude oil imports from Russia amounted to 659,000 barrels per day (bpd).
- Imports from Venezuela were recorded at 612,000 bpd in the first six days of April.
Secure Supply Options
- Russia and Venezuela are considered secure supply sources as their shipments do not pass through the Strait of Hormuz, a critical route for 20% of global crude oil transit.
Adjustments in Oil Procurement
- Due to U.S. waivers allowing purchases from Moscow, Indian refiners increased Russian oil imports.
- India resumed Venezuelan oil imports, previously halted due to U.S. sanctions in 2019.
- Current imports have led to a decrease in shipments from West Asia.
Alternative Suppliers
- India imported 407,000 bpd from the UAE and 314,000 bpd from Oman.
- Additional imports from Nigeria and Angola totaled 343,000 bpd and 182,000 bpd, respectively.
Impact on Traditional Suppliers
- In March, imports from Iraq and Saudi Arabia fell by 75% and 43%, respectively, due to disruptions via the Strait of Hormuz.
- No current shipments from Saudi Arabia or Iraq are headed to India.
Global Oil Market Dynamics
- Amid a global oil rally linked to Iran, Russian crude prices surged, with Urals crude reaching $116.05 a barrel on April 2.
- By the time it reaches India, Urals trades at a premium to Brent, which has widened to $6.1 a barrel.
