India’s Russian Oil Imports Hit 10-Month High as ESPO Demand Surges in May
India's Russian oil imports hit a 10-month high in May 2025, nearing 1.8M bpd, fueled by strong demand for ESPO crude amid refinery shutdowns
India's imports of Russian crude oil will likely exceed 1.8 million barrels a day in May 2025, representing the highest level last seen in October 2022. According to Kpler, demand for light sweet grades, mainly ESPO Blend, is causing the increase. Favorable yields and low prices have caused Indian refiners to choose ESPO.
A surge in imports is happening while major Indian refineries, Reliance Industries and MRPL, are undergoing maintenance, as planned. Fluid catalytic crackers rely more on alternative feedstock as the number of crude distillation unit shutdowns has grown. Rystad Energy analysts explained that because of the difficulties, importers looked to buy more light crude from Russia.
Impact of Long-Term Deals and Market Premiums
Long-term contracts are behind some recent shipments from ESPO to India. Reliance Industries has grown in deliveries to the Sikka port this year because it has an ongoing supply deal with Rosneft. Because of this trend, imports are likely to stay at high levels through mid-2025.
People in the industry say that spot prices for ESPO crude at Indian ports are currently $0.50 to $1 higher than Dubai's, according to the market. Despite the higher charges, buyers are not holding back, showing the demand size. The demand for transportation fuels, which crude oil supports, is constant in India, so its lighter grade catches attention.
China's Reduced Intake Fuels India's Opportunities
Chinese state-owned refiners' lowered demand for ESPO crude played a significant role in boosting India's access. Concerns about sanctions affecting Russia's shadow tankers and financial firms have caused Chinese buyers to act cautiously, leaving more ESPO barrels in the region.
Market data points out that import restrictions hold Chinese independent refiners back, which limits their purchasing of more sanctioned crude. This move has helped Indian refiners buy more shipments, even when ESPO shipping prices to China rose.
Traders indicated that July-shipped ESPO offers to China are up to $2 per barrel more than Dubai, while June loads were quoted from $1.50 to $1.70 above the same benchmark. As a result, Indian demand has squeezed supplies and led to increased rivalry, quietly shaping crude oil prices across the Asia-Pacific. Overall, India is keen on Russian crude and is just as interested in ESPO thanks to the country's interest in keeping various sources and negotiating good financial terms. The current state is expected to shape regional crude markets even through summer.