India has achieved a new milestone in its acquisition of Russian oil, with imports soaring to an unprecedented 2.1 million barrels per day in May. This surge is driven by attractive discounts and a slowdown in demand from China, creating a favorable market for Indian buyers.

Trade sources and shipping data reviewed by Reuters reveal that Russian oil’s share in India’s import mix skyrocketed to 41% last month. This marks a significant shift, with Russia overtaking Saudi Arabia as India’s top oil supplier for the first time since at least 2020. Saudi supplies to India dropped to a 10-month low of 1.6 million barrels per day after Aramco, the Saudi oil giant, increased prices for the second month in a row.

India’s overall crude oil imports in May climbed by 5.6% from April, reaching 5.1 million barrels per day. This increase was propelled by robust domestic demand and lower prices on the global market. Notably, India’s imports of American oil also saw a substantial rise, increasing by 28% to 176,000 barrels per day.

The recent shift in India’s import patterns is driven by several factors. Chief among them are the appealing discounts offered by Russia and the reduced demand from China, which has been facing higher crude prices from other suppliers like Saudi Arabia.

India’s continued reliance on discounted Russian oil is likely to pose a significant challenge to Western nations. These countries are attempting to curtail Moscow’s energy revenues in response to Russia’s invasion of Ukraine. India’s strategic move to capitalize on lower prices not only underscores its focus on economic pragmatism but also highlights the complex dynamics of global energy politics.

This development indicates a broader realignment in global oil markets as countries like India navigate geopolitical tensions and economic imperatives to secure energy resources at favorable prices. As the world’s third-largest oil importer, India’s decisions in the energy sector have substantial implications for global supply chains and market stability. India’s record-setting purchases of Russian oil exemplify its ability to adapt to shifting global conditions, leveraging economic opportunities while balancing international diplomatic considerations.