New Delhi: Russia remained the largest source of crude oil for India in April, supplying 1.6 million barrels per day (mbd), followed by Saudi Arabia, the United Arab Emirates (UAE), Venezuela, and Qatar, according to data from shipment-tracking firm Kpler.
India's crude imports in April
India imported nearly 4.4 mbd of crude in April, marginally lower than in March (4.5 mbd) and 85% of February shipments (5.2 mbd). This decline occurred amid ongoing disruptions to supply flows through the Strait of Hormuz. Supplies from Russia were down 20% from nearly 2 mbd in March, which was the highest since May last year.
Shift in supplier dynamics
While Saudi Arabia (685,000 barrels per day) and the UAE (575,000 barrels per day) ramped up supplies, India resumed imports from Iran and Venezuela to plug the gap caused by disruptions from other West Asian nations. No shipments arrived from Iraq, Kuwait, Qatar, or the Saudi-Kuwait neutral zone in April, despite Iraq usually being among India's top crude suppliers.
Shipments from Saudi Arabia came through the East-West crude pipeline, while the UAE sent consignments via the ADCOP pipeline to Fujairah on the Gulf of Oman. Supplies from other Gulf producers continue to depend largely on the Strait of Hormuz.
Resumption of imports from Iran and Venezuela
For the first time since March 2019, Indian refiners sourced nearly 130,000 barrels of oil per day from Iran in April, after the United States eased sanctions for a month to help reduce global crude prices. They also secured about 290,000 barrels per day from Venezuela after a gap of 11 months.
LPG imports decline
Imports of liquefied petroleum gas (LPG) fell to less than 1 million tonnes (MT) in April, down from 2-2.2 MT during the pre-crisis months. Data showed that India received nearly 950,000 tonnes of the primary cooking fuel in April, about 16% less than March shipments, which were estimated at a little over 1.1 MT. The supply gap was plugged by a 30% increase in domestic LPG production.
Outlook for LPG imports
With no resolution to the global energy crisis in sight, experts believe imports are likely to remain affected in the near future. "India is, therefore, likely to continue facing tight LPG import availability in the near term. The situation remains sensitive, as disruptions of Middle East supply, India's key sourcing region, are keeping import availability constrained," said Sumit Ritolia, lead analyst at Kpler.
Natural gas imports rise
The diversification of supplies from non-Gulf countries, including the United States, Australia, Canada, Norway, and Russia, helped India secure 1.9 million tonnes of natural gas in April, up from 1.6 MT in March.
