Russian crude oil imports create another record in January

India imported a record volume of crude from Russia in January, or 28% of its total imports, little affected by the West’s price cap on Russian oil, as per energy cargo tracker Vortexa. India received 1.27 million barrels a day (mbd) of Russian crude in January, 6% more than in December, while China received 0.98 mbd of seaborne Russian crude and Europe 0.27 mbd.

Russia remained the top crude supplier to India for the fourth month in a row in January, improving its market share from 26% in December. Iraq, Saudi Arabia and the UAE also expanded their share in a month by one percentage point each to 20%, 17%, and 8%, respectively. The share of the US rose from 7% to 9% while that of Africa fell from 9% to 6% in January.

Russian oil trade has carried on far more smoothly than was expected ahead of the West’s imposition of the price cap on December 5. “Russian Urals are currently trading below the price cap, and the availability of sufficient tonnage supply from existing and incumbent vessel owners have facilitated continued exports of Russian crude so far,” said Serena Huang, analyst at Vortexa. The US and allies have barred their shippers, insurers and financiers from touching any Russian cargo purchased at more than $60 a barrel.

But with the Urals staying below the cap in December and January, the Western restrictions linked to the cap just didn’t trigger. The Urals comprise 80% of India’s import of Russian crude.

Espo and Sokol, the other two grades that made up 8% of India’s Russian imports, are currently trading around $74-78 per barrel. For the transport of such crude, which is trading above price cap, Russia has been using its own fleet of ships and those from friendly countries.

India’s overall crude imports fell 6% over the previous month to 4.6 mbd in January. Private sector refiners such as RIL and Russia-backed Nayara Energy accounted for 47% of the total Russian crude imports in January.