India becomes top buyer of Russian oil
Published: 04:08 PM,Aug 22,2024 | EDITED : 08:08 PM,Aug 22,2024
NEW DELHI: India overtook China as the world’s largest importer of Russian oil in July. Chinese refiners reduced their purchases due to lower profit margins from producing fuels, according to import data.
Russian crude accounted for a record 44 per cent of India’s oil imports last month, reaching 2.07 million barrels per day (bpd), up 4.2 per cent from June and 12 per cent more than a year ago. This exceeded China’s July oil imports from Russia, which totalled 1.76 million bpd via pipelines and shipments, based on Chinese customs data.
Indian refiners have been increasing their intake of Russian oil, which is sold at discounts following Western sanctions against Moscow due to Russia’s attack of Ukraine. “India’s requirement for Russian oil is likely to rise unless there are further tightening of sanctions,” an Indian refining source noted.
Since Russia’s war against Ukraine began in February 2022, India’s trade with Russia has increased, primarily driven by oil and fertiliser imports. This shift has helped stabilise global prices and manage inflation.
India’s growing purchases are altering the flow of Russian ESPO Blend crude from traditional Chinese buyers to South Asia. ESPO imports to India rose in July to 188,000 bpd, facilitated by the use of larger Suezmax vessels.
While refiners in northeast China, typically the largest ESPO buyers due to proximity, have reduced their demand due to weak fuel consumption, Iraq remained the second-largest oil supplier to India last month, followed by Saudi Arabia and the United Arab Emirates.
India’s crude purchases from the Middle East increased by 4 per cent in July, raising the region’s share in India’s overall mix to 40 per cent from 38 per cent in June. — Reuters
Russian crude accounted for a record 44 per cent of India’s oil imports last month, reaching 2.07 million barrels per day (bpd), up 4.2 per cent from June and 12 per cent more than a year ago. This exceeded China’s July oil imports from Russia, which totalled 1.76 million bpd via pipelines and shipments, based on Chinese customs data.
Indian refiners have been increasing their intake of Russian oil, which is sold at discounts following Western sanctions against Moscow due to Russia’s attack of Ukraine. “India’s requirement for Russian oil is likely to rise unless there are further tightening of sanctions,” an Indian refining source noted.
Since Russia’s war against Ukraine began in February 2022, India’s trade with Russia has increased, primarily driven by oil and fertiliser imports. This shift has helped stabilise global prices and manage inflation.
India’s growing purchases are altering the flow of Russian ESPO Blend crude from traditional Chinese buyers to South Asia. ESPO imports to India rose in July to 188,000 bpd, facilitated by the use of larger Suezmax vessels.
While refiners in northeast China, typically the largest ESPO buyers due to proximity, have reduced their demand due to weak fuel consumption, Iraq remained the second-largest oil supplier to India last month, followed by Saudi Arabia and the United Arab Emirates.
India’s crude purchases from the Middle East increased by 4 per cent in July, raising the region’s share in India’s overall mix to 40 per cent from 38 per cent in June. — Reuters