India's Russian Crude Oil Imports Surge to 10-Month High on ESPO Demand
Wednesday, 21 May 2025, 15:39 IST
• India's Russian crude oil imports are set to raise 10-month high of 1.8 million barrels per day in May.
• Refinery shutdowns and favorable margins have led Indian refiners to boost purchases, outpacing reduced Chinese demand.
• This surge has pushed up ESPO premiums, reflecting India’s strategic shift toward opportunistic and diversified crude sourcing.
India’s imports of Russian crude oil are projected to approach nearly 1.8 million barrels per day in May, reaching the highest level in 10 months, as per ship-tracking information from Kpler. This increase is driven by Indian refiners boosting their acquisitions of lighter Russian grades like the ESPO Blend to satisfy climbing processing demands.
The robust interest in ESPO, light sweet crude shipped from Russia’s Far East port of Kozmino, is anticipated to persist into July with Indian refiners securing more than 10 cargoes of June-loading volumes recently. The uptick in purchasing in India is also playing a role in raising spot premiums for ESPO shipments sent to China, which is typically the largest consumer. Shutdowns of crude distillation units at key Indian refineries, such as Reliance Industries and Mangalore Refinery and Petrochemicals Limited (MRPL). These have increased the necessity for supplementary feedstock at fluid catalytic crackers, remarked Jay Shah, a senior oil analyst at Rystad Energy. He highlighted that some of these deliveries are part of an ongoing supply contract between Reliance and Russian oil powerhouse Rosneft, with a rise in shipments noted at the Sikka port since early 2025.
An insider from an Indian refinery stated that ESPO crud is readily available, which currently is priced at premiums ranging from 50 cents to $1 per barrel above Dubai benchmarks. "ESPO oil is available in good quantities in the market. Traders are charging a premium of about 50 cents to Dubai prices”, said Sweet Crude. The increased supply for Indian buyers is partially a result of weakened demand from Chinese state-owned companies, which are steering clear of sanctioned crudes, and stringent crude import limitations for independent Chinese refiners.
Consequently, due to India’s vigorous purchasing, ESPO prices for China have escalated. Offers for cargoes scheduled for July loading have plummeted to approximately $2 per barrel above Dubai prices, rising from $1.50 to $1.70 for June-loading shipments, as reported by traders. This increase in imports highlights India’s strategic pivot towards varied sourcing and opportunistic purchasing in response to global market trends and refinery needs.
• Refinery shutdowns and favorable margins have led Indian refiners to boost purchases, outpacing reduced Chinese demand.
• This surge has pushed up ESPO premiums, reflecting India’s strategic shift toward opportunistic and diversified crude sourcing.
India’s imports of Russian crude oil are projected to approach nearly 1.8 million barrels per day in May, reaching the highest level in 10 months, as per ship-tracking information from Kpler. This increase is driven by Indian refiners boosting their acquisitions of lighter Russian grades like the ESPO Blend to satisfy climbing processing demands.
The robust interest in ESPO, light sweet crude shipped from Russia’s Far East port of Kozmino, is anticipated to persist into July with Indian refiners securing more than 10 cargoes of June-loading volumes recently. The uptick in purchasing in India is also playing a role in raising spot premiums for ESPO shipments sent to China, which is typically the largest consumer. Shutdowns of crude distillation units at key Indian refineries, such as Reliance Industries and Mangalore Refinery and Petrochemicals Limited (MRPL). These have increased the necessity for supplementary feedstock at fluid catalytic crackers, remarked Jay Shah, a senior oil analyst at Rystad Energy. He highlighted that some of these deliveries are part of an ongoing supply contract between Reliance and Russian oil powerhouse Rosneft, with a rise in shipments noted at the Sikka port since early 2025.
An insider from an Indian refinery stated that ESPO crud is readily available, which currently is priced at premiums ranging from 50 cents to $1 per barrel above Dubai benchmarks. "ESPO oil is available in good quantities in the market. Traders are charging a premium of about 50 cents to Dubai prices”, said Sweet Crude. The increased supply for Indian buyers is partially a result of weakened demand from Chinese state-owned companies, which are steering clear of sanctioned crudes, and stringent crude import limitations for independent Chinese refiners.
Consequently, due to India’s vigorous purchasing, ESPO prices for China have escalated. Offers for cargoes scheduled for July loading have plummeted to approximately $2 per barrel above Dubai prices, rising from $1.50 to $1.70 for June-loading shipments, as reported by traders. This increase in imports highlights India’s strategic pivot towards varied sourcing and opportunistic purchasing in response to global market trends and refinery needs.
