India's Crude Imports from Saudi Arabia Reach Record High in February

Key Figures:

• 1.05 million bpd: India's crude imports from Saudi Arabia in February, a record high
• 1.07 million bpd: Russia's crude imports to India in February, with volumes 40% lower than the record 1.8 million bpd in November
• 5.3 million bpd: India's total crude imports in February, a tad higher than 5.2 million bpd in the previous month
• 20%: Russia's share in India's imports in February, down from 23% in the previous month
• 19.6%: Saudi Arabia's share in India's oil imports in February, up from 15% in January

Market Analysis

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India's crude imports from Saudi Arabia reached a record high in February, with 1.05 million barrels per day (bpd) of oil imports. This growth in Gulf-origin crude imports can have significant implications for prices and energy security, particularly with the widening US-Iran conflict disrupting supplies through the Strait of Hormuz. Russia remained the largest supplier of crude to India, but volumes were nearly 40% lower than the record 1.8 million bpd in November.

Shift in Supply Dynamics

The US sanctions on Russian oil majors Rosneft and Lukoil have led to a shift in India's crude imports. In the last two to three months, India's dependence on West Asian Eastern barrels has grown, with refiners seeking to move away from Russian oil. This has led to a decline in Russia's share in India's imports to 20% in February from 23% in the previous month.

Regional Developments

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Imports from the United Arab Emirates (UAE) also increased by 42% to 561,000 bpd against 395,000 bpd in January. Analysts believe that Indian refiners may pivot back to Russian oil as access to West Asian grades tightens amid the US-Iran conflict. A disruption of the Strait of Hormuz will affect 50% of India's total oil imports and almost all of its LPG purchases.

Contingency Planning

India is putting in place a contingency plan to secure crude supply, including exploring new routes and increased intake of Russian barrels. The country's crude imports stood at 5.3 million bpd in February, a tad higher than 5.2 million bpd in the previous month.