Russian Oil Shipments to India in June Hit Post-War Price Lows

Russian Oil Shipments to India in June Hit Post-War Price Lows

Ira Singh
8 Aug’23

Russian oil shipments to India during the month of June have reached their lowest prices since the outbreak of the conflict in Ukraine.

The price for each barrel including freight costs was $68.17, down from $70.17 in May and $100.48 a year earlier, according to the latest figures from India’s Ministry of Commerce and Industry. While that’s higher than a $60 cap imposed by Western nations on Moscow, the threshold doesn’t include shipping.

India has become one of the world’s top consumers of cheaper Russian crude oil since the war, along with China.Data from Kpler shows Indian imports dipping over the past two months with flows expected to fall further in August as the OPEC +producer fulfills a pledge to trim exports .The analytics firm sees shipment to the South Asian nation rebounding from October, however.

India typically buys Russian crude on a delivered basis inclusive of freight, insurance and other miscellaneous costs.It leaves the seller to handle all logistics and risks with transporting the crude, regardless of whether the shipment is under or over price cap.

Imports from Iraq in June averaged $67.10 a barrel, while those from Saudi Arabia were much higher at $81.78, according to the government data.India relies on imports to meet 88% of its oil demand needs.

Oil minister Hardeep Singh Puri told reporters in New Delhi on Friday that the discounts on Russian crude oil had narrowed, without elaborating.Global benchmark prices have climbed over recent weeks after Russia and Saudi Arabia pledged supply curbs to prop up the market.