Russia crude imports up 5% in July

economictimes.indiatimes.com:

Private sector refiners helped boost India's imports of Russian oil in July after a decline in June amid reports of narrowing discounts. India imported 1.92 million barrels a day of Russian crude in July, almost reaching the record levels of May, according to energy cargo tracker Vortexa. Imports in July were 5% higher than in June and barely 6,000 barrels per day lower than in May.

Private sector refiners, comprising Reliance Industries and Rosneft-backed Nayara Energy, imported 21.5% more crude from Russia last month compared to June while state-run refiners reduced imports by 2.5%. The private sector accounted for 37% of Russian oil imports in July. India's imports of Russian flagship grade Urals reached a record-high of 1.6 million barrels per day in July, 18% higher than in June amid reports that its rising prices, which have breached the G7 price cap of $60/barrel, could dissuade buyers from ordering more.

An Indian oil ministry official complained last month that narrowing discounts on Russian oil and payment troubles could prompt state-run refiners to reduce imports from Russia. "(Narrowing discounts) has been a strategic move by Russia given limited alternative medium-sour crude suppliers that Indian refiners can turn to amid OPEC's production cuts," said Serena Huang, an analyst at Vortexa. «But cognisant that India and China remain key outlets for its crude, Russia will likely keep its crude attractively priced, but narrow the discounts relative to previous months.» Prices are usually linked to the average of international benchmarks in the month of loading and orders are placed at least a month in advance.