As refiners with brimming storage cut purchases after a continuous decline in fuel demand, India’s oil imports in May hit the lowest since October 2011. India imported 3.18 million bpd of oil last month. This is a decline of about 26 percent from a year ago and about 31 percent from April.
Indian refiners in April filled tanks with cheaper oil due to an unexpected fall in demand because of lockdown measures to contain the novel coronavirus. Extra cargoes sold to the federal government for strategic reserves and force majeure declared on crude imports.
For a second consecutive month in May, Saudi Arabia was the top oil supplier to India. However, supplies from the kingdom declined by nearly 28 percent from April. India’s oil imports from Iraq fell by 43 percent to about 554,000 bpd, the lowest since October 2016. As refiners have raised crude processing and demand is recovering, India’s oil imports in June are set to recover.
