India's Crude Oil Imports Hit Record High, Jump Nearly 10% MoM In May

Last Updated:
Oil prices jump on Monday to their highest since January.
India's crude oil imports reached a record 23.32 million metric tons in May, up 9.8% month-on-month, government data showed on Monday. The data highlights demand in India, the world's third-largest importer and consumer of oil, reflecting the broader economic and industrial activities driving it.
India's fuel demand rose to 21.32 million metric tonnes in May, its highest in more than a year, Oil Ministry data showed this month.
India will take measures to safeguard domestic fuel supplies, oil minister Hardeep Singh Puri said on Sunday, after U.S. attacks on Iran's nuclear sites over the weekend raised the risk of disruption to Middle Eastern oil and gas, leading to soaring energy prices.
Oil prices jumped on Monday to their highest since January.
The share of Russian oil in India's imports in May declined marginally as refiners cut purchases from Moscow by 15.7% to 1.7 million barrels per day (bpd), tanker data from trade and industry sources showed.
On a yearly basis, crude oil imports climbed 5.9% from 22.03 million metric tons in May 2024, according to data from the Petroleum Planning and Analysis Cell (PPAC).
Imports of crude oil products fell by about 3.9% on a yearly basis to 4.20 million tons in May, while product exports rose more than 7% to 5.63 million tons.
The data for imports and exports is preliminary because private refiners share numbers at their discretion.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed - Reuters)
First Published:
June 23, 2025, 11:42 IST

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

32 minutes ago

• Time of India

Strait of Hormuz blockade looms: Asian countries most vulnerable to Iran's trump card

Around 84 percent of oil passing through the Strait of Hormuz is destined for Asia, leaving the economies of China, India, South Korea and others vulnerable should Iran blockade the crucial trading route over US strikes on its nuclear sites. Around 14.2 million barrels of crude oil and 5.9 million barrels of other petroleum products pass through the strait per day -- representing around 20 percent of global production in the first quarter, according to the US Energy Information Administration (EIA). And crude oil from Saudi Arabia, the UAE, Iraq, Kuwait, Qatar and Iran almost exclusively passes through the corridor. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Your IQ Is 140 If You Can Answer 10 Of These Questions Correctly IQ International Undo Here are the main Asian countries where oil exported via the strait is destined: China More than half of the oil imported by East Asia passes through the Strait of Hormuz, experts estimate. Live Events China is one of the largest buyers, importing 5.4 million barrels of crude oil a day through Hormuz in the first quarter this year, according to the EIA. Saudi Arabia is China's second-largest supplier of crude oil, accounting for 15 percent of its total oil imports -- 1.6 million barrels a day. China also buys more than 90 percent of Iran's oil exports, according to the analysis firm Kpler. It imported 1.3 million barrels of Iranian crude oil a day in April, down from a five-month high in March. India India is highly dependent on the Strait of Hormuz, importing 2.1 million barrels of crude a day through the corridor in the first quarter, EIA data shows. Around 53 percent of India's imported oil in early 2025 came from Middle Eastern suppliers, particularly Iraq and Saudi Arabia, local media reported. Also Read: India safe from Strait of Hormuz closure due to diversified oil imports, says Hardeep Singh Puri Wary of an escalating conflict in the Middle East, New Delhi has increased its imports of Russian oil over the past three years. "We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks," India's Minister of Petroleum and Natural Gas Hardeep Singh Puri said on Sunday. "We have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now," he wrote on X, adding "We will take all necessary steps to ensure stability of supplies of fuel to our citizens." South Korea Around 68 percent of South Korea's crude oil imports pass through the Strait of Hormuz -- 1.7 million barrels a day this year, according to the EIA. South Korea is particularly dependent on its main supplier Saudi Arabia, which last year accounted for a third of its oil imports. Seoul's trade and energy ministry said there have been "no disruptions so far in South Korea's crude oil and LNG imports" but "given the possibility of a supply crisis", officials were "planning for potential disruptions in the Strait of Hormuz". "The government and industry stakeholders have prepared for emergencies by maintaining a strategic petroleum reserve equivalent to about 200 days of supply," the ministry said in a statement. Japan Japan imports 1.6 million barrels of crude oil a day through the Strait of Hormuz, the EIA says. Japanese customs data showed 95 percent of crude oil imports last year came from the Middle East. The country's energy freight companies are readying for a potential blockade of the strait. "We're currently taking measures to shorten as much as possible the time spent by our vessels in the Gulf," shipping giant Mitsui OSK told AFP. Others Around 2 million barrels of crude oil passing through the Strait of Hormuz each day in the first quarter were destined for other parts of Asia -- particularly Thailand and the Philippines -- as well as Europe (0.5 million barrels) and the United States (0.4 million barrels). Limited alternatives Asian countries could diversify their oil suppliers, but it is difficult to replace the large volumes coming from the Middle East. In the short term, "elevated global oil inventories, OPEC+'s available spare capacity, and US shale production all could provide some buffer", experts at MUFG Bank said. "However, a full closure of the Hormuz Strait would still impact on the accessibility of a major part of this spare production capacity concentrated in the Persian Gulf," they said. Saudi Arabia and the UAE have infrastructure to bypass the strait, potentially mitigating disruptions, but their transit capacity remains very limited -- around 2.6 million barrels a day. And the Goreh-Jask pipeline built by Iran to export via the Gulf of Oman, which has been inactive since last year, has a maximum capacity of only 300,000 barrels per day, according to the EIA.

Time of India

an hour ago

• Time of India

Nato leaders set to agree historic defence spending pledge, but hike won't apply to all

AP image THE HAGUE: Nato leaders are expected to agree this week that member countries should spend 5 percent of their gross domestic product on defence, except the new and much vaunted investment pledge will not apply to all of them. Spain has reached a deal with Nato to be excluded from the 5 percent of GDP spending target, while President Donald Trump said the figure shouldn't apply to the United States, only its allies. In announcing Spain's decision Sunday, Prime Minister Pedro Sanchez said the spending pledge language in Nato's final summit communique - a one-page text of perhaps half a dozen paragraphs - would no longer refer to "all allies." It raises questions about what demands could be insisted on from other members of the alliance like Belgium, Canada, France and Italy that also would struggle to hike security spending by billions of dollars. On Friday, Trump insisted the US has carried its allies for years and now they must step up. "I don't think we should, but I think they should," he said. "Nato is going to have to deal with Spain." Trump also branded Canada "a low payer." Nato's new spending goals The 5 percent goal is made up of two parts. The allies would agree to hike pure defence spending to 3.5 percent of GDP, up from the current target of at least 2 percent, which 22 of the 32 countries have achieved. Money spent to arm Ukraine also would count. A further 1.5 percent would include upgrading roads, bridges, ports and airfields so armies can better deploy, establishing measures to counter cyber and hybrid attacks and preparing societies for future conflict. The second spending basket is easy for most nations, including Spain. Much can be included. But the 3.5 percent on core spending is a massive challenge. Last year, Spain spent 1.28 percent of GDP on its military budget, according to Nato estimates, making it the alliance's lowest spender. Sanchez said Spain would be able to respect its commitments to Nato by spending 2.1 percent of GDP on defence needs. Spain also is among Europe's smallest suppliers of arms and ammunition to Ukraine, according to the Kiel Institute, which tracks such support. It's estimated to have sent about 800,000 euros ($920,000) worth of military aid since Russia invaded in 2022. Beyond Spain's economic challenges, Sanchez has other problems. He relies on small parties to govern and corruption scandals have ensnared his inner circle and family members. He is under growing pressure to call an early election. Why the spending increase is needed There are solid reasons for ramping up spending. The Europeans believe Russia's war on Ukraine poses an existential threat to them. Moscow has been blamed for a major rise in sabotage, cyberattacks and GPS jamming incidents. European leaders are girding their citizens for the possibility of more. The alliance's plans for defending Europe and North America against a Russian attack require investments of at least 3 percent, Nato experts have said. All 32 allies have endorsed these. Each country has been assigned "capability targets" to play its part. Spanish Foreign Minister Jose Albares said Monday that "the debate must be not a raw percentage but around capabilities." He said Spain "can reach the capabilities that have been fixed by the organisation with 2.1 percent." Countries much closer to Russia, Belarus and Ukraine all have agreed to reach the target, as well as nearby Germany, Norway, Sweden and the Netherlands, which is hosting the two-day summit starting Tuesday. The Netherlands estimates Nato's defence plans would force it to dedicate at least 3.5 percent to core defence spending. That means finding an additional 16 billion to 19 billion euros ($18 billion to $22 billion). Setting a deadline It's not enough to agree to spend more money. Many allies haven't yet hit an earlier 2 percent target that they agreed in 2014 after Russia annexed Ukraine's Crimean Peninsula. So an incentive is required. The date of 2032 has been floated as a deadline. That is far shorter than previous Nato targets, but military planners estimate Russian forces could be capable of launching an attack on an ally within five to 10 years. The US insists it cannot be an open-ended pledge and a decade is too long. Still, Italy says it wants 10 years to hit the 5 percent target. The possibility of stretching that period to 2035 also has been on the table for debate among Nato envoys. An official review of progress could also be conducted in 2029, Nato diplomats have said.

Business Standard

an hour ago

• Business Standard

Hormuz blockade may shrink Russian crude discounts for Indian refiners

Indian refiners may end up paying higher prices for Russian oil delivered in August due to escalating tensions in the Strait of Hormuz—a key transit route for around 40 per cent of India's crude imports and more than half of its LNG supplies—industry sources said. The threat of an Iranian blockade has added pressure to shipping costs and tightened the global supply of Middle Eastern oil, prompting refiners to brace for reduced discounts on Russian crude. August negotiations underway Indian refiners began negotiations this week with Russian suppliers for August-loading crude, typically done 45 days ahead of delivery, a trader at a state-owned refiner said. While volumes may remain stable or decline, demand from countries like Turkey is intensifying. Over 70 per cent of India's Russian oil consists of the medium, sour Urals grade—also preferred by Turkish refiners, particularly amid disrupted Middle East flows. Discounts fall as freight and demand rise Russian oil discounts may fall to their lowest levels in months due to higher shipping costs and increased competition, two refinery traders told Business Standard. Russia currently supplies four out of every ten barrels of oil imported by India. 'We may have to pay more for Russian oil because the discounts on the grades may shrink,' said a senior trader at a state-run oil company. Discounts could narrow by 20–40 cents per barrel, potentially falling below $2 per barrel, refining sources said. For context, discounts stood at $10–$15 per barrel in 2023 and $5–$8 earlier this year. Tighter margins could impact the gross refining margins of Indian refiners, they added. Reliance, PSUs face squeeze on discounts At present, Indian state-run refiners secure discounts of about $2.50 per barrel on Russian crude, priced against the European Dated Brent benchmark on a delivered basis. Reliance Industries, the country's top Russian oil importer, obtains a higher $3-per-barrel discount under a 500,000 barrels-per-day term deal signed with Rosneft in December. Most Russian supplies to India, however, are purchased on the spot market. Espo demand from China may rise India may also face stiffer competition from China for the East Siberia–Pacific Ocean (Espo) grade in August, particularly as Chinese refiners lose access to Iranian crude due to ongoing conflict, an Indian refining executive said. China does not typically purchase Urals but prefers Espo, a lighter crude. India's purchases of Espo have increased this year amid China's declining demand. But with Iranian supply constraints, China's dependence on Espo may rise again. This month, Espo was India's second-largest imported Russian grade, at 162,000 barrels per day, according to ship-tracking data. Russia remains top supplier Russian crude made up a record 45 per cent of India's total crude imports during the first 23 days of June, exceeding 2.2 million barrels per day, according to Paris-based intelligence firm Kpler. Urals inflows reached an all-time high of 1.6 million bpd. Reliance Industries accounted for 722,000 bpd—roughly a third of total Russian imports. State-run refiners, led by Indian Oil Corporation and Bharat Petroleum Corporation, together imported about 52 per cent. The remainder comprised lighter grades such as CPC Russia, Espo, and Arco.