India imported 1.2 million barrels per day (mbd) of Russian crude in January, 9% less than in December, according to energy cargo tracker Vortexa. India’s import volumes were the same as China’s seaborne import of Russian oil. Indian state refiners imported 21% less Russian crude in January while private sector refiners took 10% more.
“The narrowing of Russian crude discounts versus Middle Eastern crude, recent US sanctions on shipowners carrying Russian crude above the price cap and rising tanker premiums as a result of the Red Sea attacks have made Russian crude less attractive for Indian refiners in recent months,” said Serena Huang, an analyst at Vortexa.
Attacks in the Red Sea by Yemen-based Houthi Rebels haven’t had much effect on Russian barrels on that route. Freight and insurance rates, however, have gone up in general and many ships are taking the longer alternative route to avoid trouble.
All key Russian crude grades are trading above the $60 per barrel cap, making it harder for Indian refiners to receive cargoes or pay for them. Urals, the flagship Russian crude which has been the mainstay of Indian imports, is trading near $70 per barrel while international benchmark Brent is around $80.
Other Russian grades are even more expensive.Crude oil imports from the US fell to zero in January. The US oil had a 3% share in December and 9% a year earlier in India’s imports.
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