India’s Crude Imports in April Reach 85% of February Levels, With Russia as the Leading Source
Russia has solidified its position as India’s primary source of crude oil, supplying 1.6 million barrels per day (mbd) in April, according to shipment-tracking firm Kpler. This marks a slight decrease from March’s imports of 4.5 mbd and February’s 5.2 mbd, as India navigates ongoing supply disruptions through the Strait of Hormuz. While imports from Russia dipped by 20% compared to March, other nations like Saudi Arabia and the UAE increased their contributions, and India resumed imports from Iran and Venezuela to mitigate the impact of these disruptions.
Crude Oil Imports Overview
In April, India imported nearly 4.4 mbd of crude oil, a marginal decline from the previous month. The data indicates that supplies from Russia were significantly lower than March’s figures, which had reached nearly 2 mbd, the highest since May of the previous year. Saudi Arabia and the UAE stepped up their shipments, providing 685,000 barrels and 575,000 barrels per day, respectively. Notably, there were no shipments from Iraq, Kuwait, Qatar, or the Saudi-Kuwait neutral zone, despite Iraq typically being a major supplier to India. The absence of these shipments highlights the ongoing volatility in the region.
Resumption of Imports from Iran and Venezuela
For the first time since March 2019, Indian refiners sourced approximately 130,000 barrels per day from Iran in April. This development followed a temporary easing of U.S. sanctions aimed at stabilizing global crude prices. Additionally, India resumed imports from Venezuela, securing about 290,000 barrels per day after an 11-month hiatus. These strategic moves are part of India’s efforts to diversify its crude oil sources and reduce reliance on traditional suppliers amid ongoing geopolitical tensions.
Challenges in LPG Imports
India’s liquefied petroleum gas (LPG) imports have also faced challenges, with shipments falling to less than 1 million tonnes in April, down from pre-crisis levels of 2-2.2 million tonnes. The country received approximately 950,000 tonnes of LPG in April, a 16% decrease from March’s shipments of over 1.1 million tonnes. To address the supply gap, domestic LPG production increased by 30%. Experts warn that without a resolution to the global energy crisis, India’s LPG import situation is likely to remain tight in the near term.
Diversification of Natural Gas Supplies
In a bid to enhance energy security, India has diversified its natural gas supplies from non-Gulf countries, including the United States, Australia, Canada, Norway, and Russia. In April, India imported 1.9 million tonnes of natural gas, an increase from 1.6 million tonnes in March. This diversification strategy aims to mitigate the risks associated with supply disruptions from the Middle East, which remains a critical sourcing region for India. As the global energy landscape continues to evolve, India’s approach to securing its energy needs will be crucial in navigating future challenges.
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