Russia emerges as India's top oil supplier amid decreasing OPEC market share


(MENAFN) According to ship tracking data from industry sources, Russia has maintained its position as the largest oil supplier to India for the fiscal year 2023-2024, marking the second consecutive year of this achievement. During this period, the market share of producing countries in the Middle East and the Organization of the Petroleum Exporting Countries (OPEC) has declined to unprecedented lows. India's dependence on Russian oil has grown significantly, with the country emerging as the top supplier to the world's third-largest oil importer.

The reliance on Russian oil stems from its availability at discounted rates, particularly after Western countries refrained from purchasing it and imposed sanctions on Moscow amid the Ukraine crisis. Despite the challenges posed by sanctions aimed at curbing Moscow's oil revenues, India has continued to import Russian oil, highlighting the strategic importance of this energy partnership.

While Russia maintains its alliance with OPEC, it has managed to capture a substantial portion of India's crude oil imports, surpassing even the largest producing countries within the OPEC alliance. Ship tracking data indicates that Russian oil accounted for approximately 35 percent of India's total crude imports, which amounted to 4.7 million barrels per day for the fiscal year ending March 31. This represents a notable increase from the previous year, where Russian oil comprised only about 22 percent of India's imports.

The data further reveals a significant uptick in the volume of Russian oil imported by India, reaching 1.64 million barrels per day for the fiscal year 2023-2024. This reflects a remarkable increase of approximately 57 percent compared to the previous year, underscoring the strengthening partnership between the two nations in the energy sector.

As India seeks to diversify its energy sources and ensure a stable supply of oil, its reliance on Russian oil has become increasingly pronounced, despite geopolitical tensions and economic sanctions. The strategic alignment between India and Russia in the energy domain underscores the resilience and adaptability of their partnership amidst evolving global dynamics and geopolitical challenges.

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