Oil pumping jacks, also known as "nodding donkeys", operate in an oilfield near Neftekamsk, the Republic of Bashkortostan, Russia, November 19, 2020.
India’s imports of cheap Russian oil set another record in May, with the OPEC+ producer wresting more market share from Saudi Arabia.
The South Asian nation took 1.96 million barrels a day from Russia last month, 15% more than the previous high in April, according to data from Vortexa Ltd. Shipments from Saudi Arabia slipped to the lowest level since February 2021, figures from the shipping analytics company show.
The average cost of Russian crude including freight costs landing on Indian shores in April was $68.21 a barrel, according to data from the Ministry of Commerce and Industry. That’s the lowest level since the nation started buying major volumes from Moscow after its invasion of Ukraine earlier last year.
The average cost of Saudi Arabian crude sent to India in April was $86.96 a barrel, while Iraqi oil was priced at $77.77 a barrel. Figures for May are expected to be released next month, but prices are likely to have dropped further given global benchmark Brent fell almost 9% during the month.
“Indian refiners continue to show a voracious appetite for Russian crude given their discounts relative to Middle Eastern supplies,” according to Serena Huang, an analyst at Vortexa. Purchases of Urals and Sokol oil saw the biggest gain and overall volumes could climb this month and July, she added.