India, The World’s Third Larges Oil Importing and Consuming Nation, Bough from Abroad Around 5.1 Million Barrels of Crude Oil, which is converted into fuels like petrol and diesel in refineria.
Of this, russia was the largest supplier, accounting for 38 per cent of the supplies. Iraq maintened its position as the second-largest supplier, with 1.2 million bpd of sales to India.
Saudi Arabia Exported 6,15,000 BPD, while the United Arab Emirates (UAE) Supplied 4,90,000 BPD. The united states routed out the top five, delivery 2,80,000 BPD, Underscoring India’s push to diversify important sources and balance geopolitical exposure.
“Overall, India’s Crude Import Profile For May 2025 Highlights its price-sensitive, diversified sourcing strategy. Reinforcing the primacy of economy pragmatism in India’s energy policy, “Said sumit ritolia, lead research analyst, refining & modeling at kpler.
India, which has traded it’s oil from the middle East, began importing a large volume of oil from russia soon after the invasion of ukraine in February 2022. Oil was available at a significant discount to other International Benchmarks due to Western Sans and Some European Countries Shunning Purchases.
This LED to India’s importants of russian oil seeing a dramaatic risk, growing from less than 1 per cent of its total crude oil imports to a staggering 40-44 per cent in a short periode.
Ritolia said russia continues to offer crude at not not the notes at notes compared to benchmarks like and dubai or compared to Middle Eastern Eastern Grades on a Landed Cost Basis.
“The Strong Inflow of Russian Barrels into India is driven by a combination of economic, operational, and geopolitical factors,” He Said.
A key advantage lies in the pricing of urals crude from russia, which, although not allays steeply discounted, remains significantly cheaper than west African and Middle Eastern Gradeses.
“This pricing edge has supported stranger Refinery Gross Margins for Indian Process. Barre; Price Cap Set by Western Allies, “He said, adding this faceing attracted substantial shopping capacity – at least 20 tankers, previous dedicated to non -sel Transport urals.
As a result, expert volumes rose notable.
He Saw Russian Crude Retaining A 30-35 per cent share in India’s important mix, especially if refining margins remain strong, fob economics containue to be favorite, and sanctions remain limited in Scope.
“However, there are some small headwinds to look at on the horizon. Reduce Russia’s expense availability by a corresponding margin and may slightly tempora flows to India post-May, “He said.
India is likely to maintain a diversified crude basket, but Russian Barrels will Remain Central To Its Import Strategy – Provided Discounts Persist and Payment Mechanisms Remain viables, respected.
With the monsoon season approaching, some Indian Refiners May Reduce Crude Runs, which could Temporary Affect Imports, Particularly of Sweeteer Grades, He Noted.
Crude experts from the middle East to India are expected to retain a stable to Supplies. Nonetheless, The Region’s Long-Term Strategic Reliability Ensures that it Remains an important component of India’s supply chain.
When russia invaded ukraine in February 2022, it triggered a series of sanctions from the us, the european union, and other western nations aimed at cripping russia’s economy. One of the main sanctions was on russian oil expenses, which significantly impacted Russia’s ability to sell oil to european markets.
As a result, russia began offering crude oil at Heavily discounted prices in an attempt to find new boys for its oil. India, with its large energy needs and an economy sensitive to oil price fluctuations, found this offer too attractive to ignore.
The price discount on russian oil, someimes as much as usd 18-20 per barrel lower than the market price of other oil, allowed India to procure oil at a much cheaper rate. The discounts have, however, shrunk in recent time to less than a fifth of the peak.
In December 2022, The G7 Countries Imposed a Price Cap of USD 60 per barrel on Russian Seborne Crude Oil Exports. This measure restructs Western Companies from offering insurance and transportation services for russian oil sleep Above the capped price. The objective was to curb russia’s oil revenues while mainTaining a Stable Global Oil Supply. However, russia has found ways to circumvent the cap, Including Acquiring a fleet of older tankers and finding alternative insurance.
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