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India replaces Middle East oil with Latin America, Africa

India replaces Middle East oil with Latin American and African crude after Hormuz disruption. Russia remains top supplier.

Zoe Allen
ByZoe Allen- Senior Editor
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Indian refiners have turned to imports from Latin America and Africa after Middle East supplies were disrupted.

The Israeli-U.S. war on Iran restricted shipping in the Strait of Hormuz.

The world's third-largest oil importer had bought most crude from the nearby Middle East until the war broke out in late February.

In April and May, India raised imports from Venezuela, Brazil, Angola and Nigeria to make up the shortfall.

It also continued buying Russian oil. Preliminary data from Kpler show that last month, India skipped purchases from Iraq as exports were halted.

India received Iranian oil after a seven-year gap following a temporary waiver from Washington to stabilize global oil prices.

Imports from Russia fell by about 29.4% from March to 1.6 million barrels per day as Nayara Energy shut its 400,000-bpd refinery for maintenance.

In May, India is due to get about 1.9 million bpd of Russian oil and about 41,000 bpd of Iraqi oil.

Overall, India imported 4.57 million bpd in April, unchanged from March, but down 15.5% from a year earlier.

Imports from the UAE rebounded in April to 669,700 bpd from 230,600 bpd in March, while Saudi Arabian intake stayed at about 619,500 bpd.

The UAE and Saudi Arabia are the only Gulf producers with pipelines bypassing the Strait of Hormuz.

The share of OPEC in India's imports rose to 45.2% in April from about 30% in March.

The UAE exited OPEC in May, freeing it from output quotas.

Higher UAE imports helped arrest a decline in the Middle East's share, while Russian oil's share fell to about 35% from nearly 50%.

Russia remained India's top oil supplier, followed by the UAE and Saudi Arabia. Brazil was fourth, Venezuela fifth.

Venezuela is on course to become the fourth-largest supplier in May.

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