India’s oil imports from Russia fell to the lowest level in the last seven months in August as monsoon rains reduced demand. According to data from real-time data tracking company Vortexa, India’s crude oil imports decreased by 5 percent in August to 4.35 million barrels per day, as industrial activity and mobility decreased due to monsoon rains. India imported 4.57 million barrels of oil per day in July.
The world’s third largest oil consumer country supplied 1.46 million barrels of oil per day from Russia in August. Last month’s import data, which was below 450 thousand barrels, was also recorded as the country’s lowest oil supply from Russia in the last seven months.
Indian refineries’ imports from Iraq, another major supplier of the country, also decreased from 891 thousand barrels per day to 866 thousand barrels in August. Saudi Arabia’s crude oil supply to India increased by 336 thousand barrels per day compared to July, reaching 820 thousand barrels.
India’s oil imports from the United Arab Emirates (UAE) also decreased from 290 thousand barrels per day in July to 273 thousand barrels per day in August. Purchases from the USA decreased by 59 thousand barrels per day compared to July, falling to 160 thousand barrels.
Serena Huang, Head of Asia-Pacific Analysis at Vortexa, stated that the decline in India’s oil demand is seasonal and said, “Planned maintenance works of some Indian refineries, which will start in September and continue until November, may further limit crude oil imports. However, in the last quarter of the year, domestic demand and general “Export margins and, accordingly, crude oil imports are expected to increase.” used the phrases.
India, the world’s third largest oil importer after China and the USA, meets its crude oil demand with imports from Russia, Saudi Arabia, Iraq, the USA, the UAE and some countries. Fuel demand in the country falls during the four-month monsoon season, which usually starts in June, as some areas are affected by severe floods.
After the war that Russia started in Ukraine on February 24, 2022, Western countries targeted the country’s export revenues by imposing embargoes and ceiling prices on Russian crude oil and oil products, on which they are highly dependent.
Russia, which lost its market due to the embargoes of Western countries, became the largest supplier of Indian refineries, which previously did not prefer Russian oil due to high freight costs. Wanting to benefit from Russia’s discounted oil sales, these refineries purchased record levels of crude oil.