The views expressed here are those of the author, a columnist for Reuters.
By Clyde Russell
LAUNCESTON, Australia, July 23 (Reuters) - Can India perform a rescue act for Asia's refined fuels market similar to what China did for crude oil?
China dramatically cut its imports of crude to a 10-year low in June in response to the U.S.-Israeli war on Iran, thus freeing up oil for other buyers struggling to source cargoes amid the effective closure of the Strait of Hormuz.
India has taken a somewhat different tack, buying Russian crude and ramping up exports of refined products to help offset lower shipments from refineries in the Middle East and Russia.
India's exports of light and middle distillates are expected to reach 1.55 million barrels per day (bpd) in July, according to data compiled by commodity analysts Kpler.
This is the second-highest level in Kpler records dating back to 2017 and almost double the 866,000 bpd recorded in May, which was the lowest in nearly four years and came amid the loss of crude from the Middle East after Iran effectively closed the Strait of Hormuz in response to the U.S.-Israeli attacks that were launched on February 28.
India's crude imports hit a 21-month low of 4.55 million bpd in April, which crimped the ability of its export-focused refineries to run at full capacity.
However, India swung to buying Russian crude after the Trump administration waived sanctions, allowing importers to openly buy cargoes from Russia.
India's imports from Russia were 2.73 million bpd in June and Kpler is estimating July arrivals will be 2.57 million bpd, the two strongest months on record, eclipsing the 2.16 million bpd from May 2023.
Similar to China's decision to cut crude imports, India's decision to buy Russian oil and increase refined product exports is not a case of altruism in order to help stressed markets in Asia — it's driven by prices.
India's refiners are taking advantage of the large premium being commanded by fuels like diesel and gasoline over crude oil.
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