India’s Russian Oil Imports Surge to 10-Month High Amid Strong ESPO Crude Demand

India’s crude oil imports from Russia have reached a 10-month high, nearing 1.8 million barrels per day in May. The surge is driven by refiners snapping up lighter grades such as ESPO Blend, which has become increasingly attractive due to favorable pricing and supply availability.  

 

Rising Demand for ESPO Crude  

- Indian refiners have ordered more than 10 cargoes of June-loading ESPO crude, signaling continued strong demand into July  

- ESPO crude is currently trading at a premium of 50 cents to 1 dollar per barrel over Dubai prices, reflecting its growing appeal in the market  

- The increase in imports comes as Chinese state-owned refiners reduce purchases of sanctioned Russian crude, freeing up more supply for India  

 

Refinery Shutdowns and Market Adjustments  

- Crude distillation unit shutdowns at major Indian refineries, including Reliance Industries and MRPL, have increased the need for alternative feedstock  

- Some ESPO cargoes arriving at India’s western Sikka port are part of a long-term deal between Reliance Industries and Rosneft  

- The shift in demand has led to a rebound in spot premiums for ESPO cargoes delivered to China, as Indian refiners absorb more supply  

 

Future Outlook and Industry Impact  

- Analysts expect India’s demand for ESPO crude to remain strong, influencing global pricing trends  

- The shift in purchasing patterns highlights India’s growing role in shaping the global oil trade  

- As refiners continue to adjust their sourcing strategies, ESPO crude could become a more permanent fixture in India’s import portfolio  

 

Sources: Business Standard, MSN News, Yahoo Finance.