Russian Crude Imports Down 25 PC In July, Russia’s Share Fall From 45 PC To 34 PC

India’s imports of Russian crude slumped 25 per cent in July against June to a five-month low of 1.57 mbd, driven largely by reduced procurement from state-run refiners. As a result, Russia’s share in India’s total seaborne crude imports dropped to 34 per cent last month from 45 per cent in June, while volumes from the Middle East—particularly Saudi Arabia and Iraq—and the US saw an uptick.

Nonetheless, at least 45 mb of Russian crude is still enroute to India. Among the inbound cargoes is the Aframax tanker Guanyin, carrying Urals to Sikka, which was added to the US sanctions list on July 30. It remains unclear whether the cargo, currently anchored off Port Said, will be redirected to other buyers or transferred via STS to a non-sanctioned vessel before reaching India, Kpler said.

Trump’s order to hike US tariffs on India by additional 25 per cent over its Russian oil purchases has thrown the Indian oil market into disarray, prompting refiners to issue more tenders for September-October delivery of non-Russian barrels in a bid to hedge against potential supply disruptions.

Indian Oil Corporation snapped up a hefty 4.5 mb of US WTI crude in a recent tender, bundled with 0.5 mb of Canada’s WCS and 2 mb of Abu Dhabi’s Das, according to reports. Other state-run refiners, including BPCL and HPCL, also picked up a handful of September-arrival Murban cargoes and are actively scouting for additional Middle Eastern and US barrels. These procurements underscore Indian refiners’ urgency to lock in prompt barrels, as they typically begin seeking mid- to late-October delivery cargoes in late July or early August.

At the same time, the Indian government has dismissed the US threat, saying it has not instructed refiners to halt purchases of Russian oil.