SerpApi.Org
By Nidhi Verma
NEW DELHI, July 21 (Reuters) - India's oil imports from Russia and Latin America surged in the April to June quarter while those from the Middle East fell due to restricted flows through the Strait of Hormuz following the U.S.-Israeli attack on Iran, data from sources show.
India, which began cutting Russian oil imports to avoid higher U.S. tariffs, increased supplies from Moscow after a temporary Washington waiver to make up for the shortfall from the Gulf caused by the blockade of the key waterway.
India's oil imports from the Middle East declined by about 27% to 1.55 million barrels per day between April and June, the first quarter of this fiscal year, while those from the Commonwealth of Independent States, including Russia, rose 8.3% to 2.26 million bpd, the data showed.
Last month, India's Russian oil imports surged to a record 2.64 million bpd, up nearly 37.4% from May, accounting for half of India's overall 5.24 million bpd, the data showed.
SHARE OF RUSSIAN OIL IN INDIA'S IMPORT MIX RISES
The Strait of Hormuz, between Iran and Oman, was the main transit route before the conflict for around a fifth of global oil supplies.
Indian refiners also raised imports from Brazil, Venezuela and Angola for heavier grades during the quarter, the data showed.
The share of Russian oil in India's overall imports in April-June rose to nearly 41% from about 38% a year ago, while that of the Middle East declined to 31% from 41.4%, the data showed.
Indian refineries' dependence on oil imports from Russia, West Africa and the Americas is expected to rise if supplies from the Strait continue to be paralysed and Yemen's Iran-aligned Houthis impose a naval blockade on Saudi Arabia, sources at Indian refiners said.
India, the world's third biggest oil importer and consumer, imported 403,000 bpd of oil from Saudi Arabia in June, mainly supplied through the Yanbu port, the data showed.
Tensions have escalated since a fragile truce between Washington and Tehran collapsed in early July, reviving heavy exchanges of strikes and further disrupting shipping through the waterway.
The sources said an option would be to import Saudi oil using a longer shipping route via the Cape of Good Hope, which will be more costly.
Indian refiners continue to depend on supplies from Moscow, buying from non-sanctioned entities, sources said, after Washington withdrew the temporary waiver on Russian oil sanctions.
(Reporting by Nidhi Verma; Editing by Jan Harvey)
