India boosts oil purchases in June

From Russia, UAE ahead of full Hormuz recovery

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India’s crude oil imports from Russia surged in June, while shipments from the United Arab Emirates were near-record levels as refiners sought to secure supplies ahead of the full restoration of flows from Gulf producers following the reopening of the Strait of Hormuz, analysts said.

India imported an average of 2.66 million barrels per day of crude oil from Russia in June, through June 19, compared to 1.91 million bpd in May, data from maritime and commodity intelligence firm Kpler showed, cementing Moscow's position as the country’s largest oil supplier.

Imports from the United Arab Emirates stood at 6,36,000 barrels per day (bpd) in June, through June 19, marginally below the record 6,44,000 bpd imported in May, while Venezuela emerged as India’s fourth-largest crude supplier with shipments of 2,09,000 bpd, behind Saudi Arabia's 384,000 bpd.

Imports from the United States fell sharply to 91,000 bpd from 2,52,000 bpd in May, according to Kpler data.

The purchases underscore India’s strategy of diversifying sourcing, with Russian barrels remaining attractive due to discounts and UAE supplies helping offset uncertainty surrounding shipments through the strategic waterway of the Strait of Hormuz.

India, the world’s third-largest energy importer, depends heavily on the Gulf region for crude oil, LNG and LPG. Supplies were disrupted after Iran closed the Strait of Hormuz, following US and Israeli attacks, choking a key energy artery that carries about 20 per cent of global oil consumption and serves as the principal export route for Gulf producers, including Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar.

Oil shipments through the Strait of Hormuz began recovering late last week after the US and Iran agreed to a ceasefire.