India's May oil supply from UAE tops pre-war levels as imports rise, data shows
- Overall crude imports rose to 5.27 million barrels per day, up 15.4% from April,
India's oil imports surged in May, with UAE becoming the second-largest supplier and Russia dominant. Refiners may shift sourcing if the Strait of Hormuz reopens or Iran sanctions lift.
- India's multi-year high oil imports in May.
- UAE becoming India's second-largest oil supplier.
- Potential scaling back of spot crude purchases.
- Consideration of Iranian oil if sanctions are lifted.
NEW DELHI: India’s oil imports from the United Arab Emirates rose above levels seen before the Iran war to a multi-year high in May, while supply from Russia, Venezuela and Angola also increased, data from industry sources showed.
Overall crude imports by the world’s third-largest oil importer and consumer rose to 5.27 million barrels per day, up 15.4% from April, the data showed, with Russia the largest supplier.
The UAE became India’s second-largest oil supplier, with imports rising nearly 41% to 942,500 bpd in May, the first full month after the Gulf producer’s exit from OPEC, as it boosted supplies from Fujairah, according to the data.
Indian refiners imported about 1.92 million bpd of Russian oil, up around a fifth from April. Purchases were boosted by private refiner Nayara, which resumed operations at its 400,000 barrel-per-day west-coast Vadinar refinery, the data showed.
Russian oil accounted for about 36.5% of India’s overall imports, up slightly from 35% in April, the data showed. Saudi Arabia ranked third among suppliers, followed by Venezuela, the data showed, while India also received a cargo of Iraqi oil after a gap of a month.
Refiners to scale back spot purchases once Hormuz reopens
Indian refiners are preparing to scale back spot crude purchases, including from Latin America, if the Strait of Hormuz opens following the signing of an interim agreement between Iran and the United States, three company sources said.
The sources declined to be identified as they were not authorised to speak with the media.
Buoyed by prospects of a peace deal, Middle Eastern producers have already asked refiners to lift full committed monthly volumes under their annual contracts once flows through the waterway resume, the sources said.
Contractual supplies were disrupted by the effective closure of the strait, which typically carries about a fifth of the global oil and gas supplies.
Refiners are also considering buying Iranian oil if sanctions are lifted and banking channels reopen, the sources said.
India received oil from Iran last month for the first time in almost seven years following temporary sanctions relief under the U.S.-Iran framework agreement.
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