India's Record-Breaking Russian Oil Imports Spark Global Energy Tensions

India's crude oil imports from Russia reached a record high in July, accounting for 55% of its total purchases. The country imported around 2.6 million barrels per day (mbd) of Russian oil, up 1.8% from June and more than double the share in January.

The surge in Russian imports came despite US sanctions on Russian oil remaining in force. However, the US had temporarily waived these sanctions to allow Russian oil already loaded on vessels to be delivered. This waiver expired on June 19, but it has not deterred India from increasing its purchases of Russian crude.

Russian Urals crude has been a key factor in Indian refiners' ability to maintain production levels despite disruptions caused by the Middle East conflict. Moscow has also offered discounts of between $2 and $3 per barrel on its oil sales to India, making it an attractive option for the country's refineries.

The rise in Russian imports has significant implications for the global energy market, particularly with regards to US-China relations. The US is pushing a bill that would permit the imposition of 100% tariffs on the top five importers of Russian oil and gas, including China and India. If passed, this could lead to a trade war between the US and these countries.