India's crude oil imports from Russia climbed to a new all-time high in July, with Russian barrels accounting for more than half of the country's total crude imports for the month. The record underscores how decisively India — the world's third-largest oil importer and consumer — has reoriented its crude sourcing toward discounted Russian barrels since Western sanctions following Moscow's 2022 invasion of Ukraine redirected Russian oil flows toward Asian buyers.

According to vessel-tracking data by Kpler cited by the Times of India on Monday, India's crude oil imports from Russia rose to 2.8 million barrels per day (bpd) in July, surpassing the previous record of 2.7 million bpd set in June. This marks the highest average monthly volume on record.

Total Indian crude oil imports edged up slightly from June, reaching just over 5 million bpd in July, per the data.

Russian oil represented 55.5% of India's overall crude imports last month. Indian refiners have continued to depend heavily on Russian volumes amid ongoing threats to shipping in the Strait of Hormuz and, more recently, at the Bab el-Mandeb Strait in the Red Sea. The G7's $60-per-barrel price cap on Russian crude, in effect since December 2022, has continued to make Russian barrels economically attractive for Indian refiners operating outside Western shipping and insurance channels.

Beyond the record Russian volumes, Indian refiners also increased imports from Saudi Arabia and Iraq. Millions of barrels managed to exit the Persian Gulf during a mid-June to mid-July window when the Strait of Hormuz was tentatively open to tanker traffic. India also resumed importing crude from Kuwait for the first time since March, according to Kpler's shipping data.

The United Arab Emirates (UAE) remained India's second-largest crude oil supplier, trailing only Russia, as the UAE ramps up production and shipments of crude loaded on tankers outside the Strait of Hormuz — utilizing export facilities such as the Fujairah terminal on the Gulf of Oman coast that bypass the chokepoint entirely.

India sustained high levels of Russian imports in July even after the expiration of a U.S. waiver the previous month. The United States quietly allowed the waiver, which had permitted the purchase of Russian oil loaded on tankers, to lapse on June 17 — coinciding with the signing of a memorandum of understanding between the U.S. and Iran to continue negotiations toward a deal.

Analysts expect Russian crude to remain a key source of oil supply for India going forward, given the highly uncertain shipping conditions persisting in both the Strait of Hormuz and the Bab el-Mandeb Strait, alongside the still-unresolved trajectory of U.S.-Iran diplomacy that could affect broader Middle East crude availability.

Source: OilPrice.com