Crude oil shipments from Russia to India, which stood at around 1 million barrels per day in November 2022, are estimated to have risen further to 1.24 million barrels a day last month, S&P Global Commodity Insights said on Thursday.

Russian crude’s share in the Indian crude basket in 2021 was around 2.2 per cent. From that level, Russia became India’s top crude supplier in November 2022, with the country receiving around 1 million barrels per day, S&P Global Commodity Insights said.

‘Imports from Russia are on course to rise even higher in December (2022), with India estimated to import around 1.24 million barrels per day of crude because of its competitive landed cost. But that has not eroded the market share of the US,” it added.

“From a market share of less than 1 per cent in India’s import basket before the start of the conflict (January 2022), Russia’s share of imports in October 2022 rose to 4.24 million tonnes (MT), or nearly 1 million barrels per day, taking a 21 per cent share. It was comparable to that of Iraq and higher than Saudi Arabia’s around 15 per cent,” S&P said last month.

Diversify sources

Indian refiners have continued to diversify their crude sources, especially after the OPEC+ cut, with a share of Russian crude staying at around 20–25 per cent of Indian crude imports, refinery economics analyst at S&P Global, Sumit Ritolia said.

“They (Indian refiners) have been aggressively making attempts to diversify by entering into term purchase deals with suppliers in the Americas and Latin America. SPR releases from the US have also widened the WTI-Brent spread, making North American crudes more appealing,” he added.

According to S&P Global data, the share of US crude in the Indian crude basket increased from 5 per cent –6 per cent in April to around 10 per cent in November last year. In the last quarter of 2022, the US displaced Kuwait to become the fifth-largest oil supplier to India.

“This resonates with the statement by the Indian Petroleum Minister as India continues to buy crude from the US for state-owned refineries looking to diversify their crude sources. India is even diversifying its Russian crude oil basket by importing Arctic-grade Varandey Blend for the first time and further strengthening its Russian crude oil import volumes,” Ritolia added.