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By Nidhi Verma
NEW DELHI, Aug 14 (Reuters) – Indian dependence on Russia’s crude surged to a record in July, with shipments from the country making up 50.83% of imports by the third-biggest oil buyer and consumer, or 2.47 million barrels per day, data from trade sources showed.
India’s July imports of Russian oil were up 62.4% from a year earlier, but down 4.8% from June’s record figure of 2.6 million bpd, the data showed.
In January, Indian refiners began cutting Russian oil imports to avoid higher U.S. tariffs as New Delhi negotiates a trade deal with Washington.
However, disruptions to Middle East supply triggered by the Iran war compelled Indian refiners to keep buying Russian barrels.
But India’s Russian crude buying faces uncertainty after legislation passed by the U.S. Senate this month to impose tariffs of 100% on buyers of Russian oil, stepping up economic pressure on Moscow over its 2022 invasion of Ukraine.
The House of Representatives has yet to approve the measure.
Russia’s share of India’s crude imports hit a record 43.25% in the first four months of the financial year that began in April, averaging more than 2 million bpd, up from a share of about 37% a year earlier, the data showed.
The shift came largely at the expense of Middle Eastern suppliers, whose share of India’s crude imports fell to about 30% in the period from April to July, versus 43% a year earlier.
The share of Latin American oil rose from 3.5% to 12.7%, mainly due to higher imports from Brazil and Venezuela, the data showed.
India relies on imports for more than 90% of its crude oil needs, making it vulnerable to disruptions in global oil trade.
India’s oil imports
Russia remained India’s largest crude supplier during the April-July period, while the United Arab Emirates overtook Iraq to become the second-largest supplier, the data showed.
The UAE, which exited OPEC in April, has been offering large volumes through spot tenders, allowing Indian refiners to increase purchases. Last year, the UAE was India’s No. 4 supplier.
Key oil suppliers to India
Reporting by Nidhi Verma; Editing by Clarence Fernandez
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