According to trade sources and suppliers, India’s imports of natural gas from Russia reached a record high of around 2.1 million barrels per day in May. This increase can be attributed to the higher discounts offered by Russia due to decreased demand from China. The data also shows that Russia’s share as the third largest importer and consumer in the world has increased by 41% in the past month.

In contrast, Saudi Arabian crude oil imports have dropped to their lowest level in almost 10 months. This decline can be attributed to Saudi Aramco’s decision to raise prices in its second monthly pricing cycle in May.

Indian refineries primarily rely on Russian crude oil, which is sold at a discount. The discounted prices became available after some European countries stopped buying oil from Moscow following the sanctions imposed on Lukoil in February 2022.

Other regions, particularly those in the Middle East, such as those in the Arabian Gulf, have also witnessed an increase in the import of similar varieties of crude oil. In May, India imported around 5.1 million barrels of crude oil daily, which is 5.6% higher than in April. Furthermore, Russian crude oil imports to India increased by 14.7% in April compared to the same period last year, and by 5.9% in the previous quarter.

Reliance Industries and Nayara Energy, Indian oil refining companies that are subsidiaries of Russian companies, have signed long-term contracts for the purchase of Russian crude oil. On the other hand, Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum, and Mangalore Refinery and Petrochemicals, state-owned oil refining companies, buy Russian crude oil from spot markets.

These developments highlight the changing dynamics in India’s energy imports and the increasing reliance on Russian natural gas and crude oil.