US petroleum exports to India surpass those from Russia

In June, India's monthly petroleum imports from Russia saw a slight decline, while imports from the US surged to their highest level since February 2022.

India, the world's third-largest petroleum importer and consumer, relies on imports for over 80% of its petroleum needs. Most of the petroleum delivered to Indian refineries in June was ordered in May.

Data from industry sources revealed that Indian refineries collectively imported 1.98 million barrels per day of Russian petroleum in June, a 3.7% decrease compared to the previous month. However, India's petroleum imports from Russia for the fiscal quarter ending June 30 increased by 1.2% year-on-year.

A trader from an Indian refinery told Reuters that Russia exported more petroleum in the June quarter due to disruptions at its refineries caused by Ukrainian drone attacks, but this supply might decrease in the September quarter.

After Western countries limited purchases of Russian petroleum and imposed various sanctions in response to Moscow's military actions in Ukraine, Indian refineries became significant buyers of discounted Russian petroleum.

According to industry data, Indian refineries have reduced purchases from some Middle Eastern producers who raised prices this year. Consequently, imports from Iraq in June fell to their lowest level since September 2020.

In June, Indian refineries received 762,400 barrels per day of Iraqi petroleum, a reduction of about 24% compared with May and 14.6% compared with June 2023.

An Indian trader commented that Iraq has no additional petroleum for sale, while Russian petroleum remains available.

Earlier this month, Iraq's Ministry of Oil confirmed the country's commitment to the OPEC Declaration of Cooperation and announced that Iraq would compensate for any production excesses since the beginning of 2024.

Nevertheless, India's monthly petroleum imports from Saudi Arabia increased by 9.7% in June after hitting a 10-month low in May.

According to a Reuters report, Iraq is India's second-largest petroleum supplier after Saudi Arabia. Imports from Russia have reduced the share of Middle Eastern petroleum in India's petroleum basket and brought OPEC's share to a historic low.