India's Russian oil imports have gone up in June
What's the story
India's crude oil imports from Russia surged to an average of 2.66 million barrels per day (bpd) in June, according to data from maritime and commodity intelligence firm Kpler. This is a significant increase from the 1.91 million bpd recorded in May. The rise has solidified Russia's position as India's top oil supplier, amid efforts to diversify sourcing strategies and ensure energy security.
Import diversification
UAE and Venezuela also contribute to India's oil import diversity
Along with Russia, the United Arab Emirates (UAE) and Venezuela have also contributed to India's oil import diversity. The UAE supplied an average of 636,000 bpd in June, slightly lower than the record 644,000 bpd in May. Meanwhile, Venezuela became India's fourth-largest crude supplier with shipments of around 209,000 bpd.
Import shift
A stark contrast in US oil imports
In stark contrast to the increase in Russian oil imports, India's purchases from the United States plummeted sharply to 91,000 bpd in June. This is a massive drop from the 252,000 bpd recorded in May. The drastic change highlights India's strategic shift toward alternative sourcing options for its crude oil requirements.
Recovery effects
Hormuz shipments recovering but truce remains fragile
The recovery of oil shipments through the Strait of Hormuz began late last week after a ceasefire agreement between the US and Iran. However, the truce remains fragile with Iranian authorities accusing Israel of violating it. According to Sumit Ritolia, senior manager - modeling at Kpler, reopening this strategic waterway is likely to provide immediate relief to India's liquefied petroleum gas (LPG) supplies.