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By Rakesh Sharma
India’s oil imports from the Persian Gulf have overtaken those from Russia for the first time since the beginning of the Iran war, as shuttle runs by tankers help restore flows through the Strait of Hormuz.
Crude shipments reaching India through the crucial West Asia chokepoint have climbed to 2.1 million barrels a day so far this month, surpassing Russian imports of 1.8 million barrels a day, according to Kpler. Daily flows via Hormuz to the world’s third-largest oil buyer had plunged to just 247,000 barrels in April from an average 2.8 million in February, after attacks on ships effectively closed the waterway as the war between US and Iran intensified.
Russian exports, meanwhile, have been hit by continued Ukrainian attacks on the country’s energy infrastructure. Overseas shipments slipped by 40,000 barrels a day to 3.63 million in the four weeks through Nov. 8, tanker data compiled by Bloomberg showed. Russia, India’s biggest oil supplier, had helped fill the gap left by dwindling West Asia shipments. Its position is now being challenged by Persian Gulf producers as traffic through Hormuz recovers, allowing Indian refiners to return to their traditional suppliers.
Economics are also driving the shift. West Asian producers are offering competitive prices and moving crude through Hormuz before transferring cargoes to customers’ tankers outside the waterway. Russian oil, by comparison, has become more expensive because of elevated freight costs and longer voyages.
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