Data shows India surpassing China to become Russi`s top oil purchaser
Date
8/26/2024 8:00:05 AM
(MENAFN) In July, India outpaced China to become the leading importer of Russian oil, according to recent data on global oil shipments. This shift highlights India’s growing role in the global oil market as Moscow adjusts its energy export strategies in response to Western sanctions imposed due to the conflict in Ukraine.
India's crude oil imports from Russia surged to a record 2.07 million barrels per day (bpd) in July, which represents 44 percent of the country’s total oil imports. This figure marks a 4.2 percent increase from June and a 12 percent rise compared to the same month the previous year. The surge is attributed to significant discounts offered by Russia, which has been redirecting its energy exports away from Western markets as part of its broader response to the sanctions.
In contrast, China's oil imports from Russia via pipelines and shipments fell to 1.76 million bpd in July, according to Chinese customs data. The decrease in China’s purchases is linked to lower profit margins from refining fuels, which has reduced the attractiveness of Russian crude for Chinese refiners.
Since February 2022, following the imposition of Western sanctions on Russia, Indian refiners have increasingly turned to discounted Russian oil. This trend has altered the traditional flow of Russian ESPO (Eastern Siberia–Pacific Ocean) Blend crude, shifting it from its primary market in China to South Asia. In July, imports of ESPO Blend to India rose to 188,000 bpd, facilitated by the use of larger Suezmax vessels.
An Indian refining source indicated that India’s demand for Russian oil is expected to continue growing, provided there are no additional sanctions tightening. The shift in the global oil trade reflects broader geopolitical and economic adjustments as countries navigate the implications of the ongoing conflict and associated sanctions.
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