May 08, 2024 (MENAFN via COMTEX) --
(MENAFN) Despite ongoing United States sanctions targeting Russia's largest shipping company and intermediaries involved in Russian oil trade, Indian imports of Russian crude oil have surged to a nine-month high in April. According to reports from the Indian Express citing vessel tracking data and industry analysts, Indian refiners imported a total of 1.96 million barrels per day (bpd) of Russian crude in April, marking the highest volume since July of the previous year.
The data, based on provisional ship-tracking data from commodity market analytics firm Kpler, indicates a significant increase of nearly 19 percent compared to volumes imported in March.
Russia accounted for 40.3 percent of India's total crude oil imports in April, rebounding from a decline to around 33 percent over the past four months.
The surge in Russian crude imports comes despite recent United States sanctions targeting Russian oil trade intermediaries and individual vessels transporting Russian oil above the G7 price cap of USD60 per barrel. In February, the United States imposed sanctions on Russian oil tanker company Sovcomflot and several vessels linked to the state-owned firm, causing disruptions and payment issues in the crude oil market. However, trade sources suggest that the impact of these sanctions on Russian oil flows to India has been marginal and short-lived.
Industry analysts speculate that Ukrainian drone strikes on Russian refining infrastructure earlier this year may have prompted Russian oil producers to export surplus crude that could not be refined domestically, thereby increasing the availability of crude oil for Indian buyers. Viktor Katona, the head of crude analysis at Kpler, suggested that this surplus availability of Russian crude contributed to the surge in Indian imports despite the geopolitical tensions and sanctions.
The resilience of Indian imports of Russian crude oil underscores the complex dynamics of global oil markets and the challenges posed by geopolitical tensions and sanctions regimes.
Despite pressure from the United States and its allies, India's reliance on Russian crude appears to have remained robust, reflecting the strategic importance of energy security and diversification for the country's economy.
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COMTEX_452056778/2604/2024-05-08T06:24:05
