India ramps up US crude imports in January

India imported more crude from the US in January as it cut back on higher-priced supplies from Iraq and Saudi Arabia, customs data show.

India imported 476,000 b/d of US in the month, almost triple 164,000 b/d a year earlier, making the US the country's fourth-largest supplier. Deliveries from India's two biggest suppliers, Iraq and Saudi Arabia, fell by 37pc to 850,000 b/d and by 26pc to 682,000 b/d respectively. Imports from the UAE dropped by 9pc to 550,000 b/d.

India paid an average of $54/bl for Saudi Arabia's largely medium, sour crude in January, while Iraqi grades, which vary from light to heavy crudes, cost $48/bl. The US supplied mainly light, sweet grades at an average cost of $51/bl, with refinery economics making it more profitable to process US grades, according to industry officials.

Purchases from Venezuela fell to zero in January because of US sanctions, from 402,000 b/d a year earlier, while imports from sanctions-hit Iran were also zero.

India has tried to compensate for a dip of close to 1mn b/d of Venezuelan and Iranian crudes by seeking supplies from the US and increasing purchases of UAE and Iraqi crude.

Indian oil minister Dharmendra Pradhan has repeatedly criticised Saudi Arabia and the Opec+ group for cutting output and hiking prices. Pump prices of transport fuels are at record rates in India, partly because of domestic taxes that make up around 60pc of the price.

Pradhan has said that India will increase purchases of crude from Africa. But sales from Nigeria fell by 2pc in January to 296,000 b/d. India's total crude imports fell by 12pc to 4.4mn b/d.

Indian crude demand remains under pressure from a resurgence in Covid-19 cases. Daily infections are at around 54,000, the highest since November, with over half of the cases in Maharashtra state. A few states have already imposed temporary lockdowns.