India overtook China to become the world’s biggest importer of Russian oil in July. Image is for representational purpose only. File | Photo Credit: Reuters
India overtook China to become the world’s biggest importer of Russian oil in July as Chinese refineries bought less oil due to lower profit margins from fuel production, a comparison of import data showed.
Russian crude accounted for a record 44% of India’s total imports last month, rising to a record 2.07 million barrels per day (bpd), up 4.2% from June and 12% from a year earlier, according to Indian shipment data from trade and industry sources.
This is higher than China’s oil imports from Russia in July, which stood at 1.76 million bpd via pipelines and shipments, according to Chinese customs data.
Indian refineries are making the most of Russian oil sold at a discount after Western countries imposed sanctions on Moscow and cut energy purchases. Russia’s invasion of Ukraine,
“Unless sanctions are tightened further, India’s need for Russian oil will continue to grow,” an Indian refining source said.
India’s trade with Russia has grown mainly due to oil and fertilizer imports since Russia launched the war against Ukraine in February 2022, helping to curb global prices and control inflation.
The flow of Russian ESPO blend crude to South Asia is shifting from traditional Chinese buyers to rising Indian purchases. ESPO imports to India rose to 188,000 bpd in July as larger Suezmax vessels were used, according to the data.
Refineries in northeastern China are usually the biggest ESPO buyers due to their proximity, but their demand has declined due to weak demand for the fuel.
Iraq remained India’s second largest oil supplier last month, followed by Saudi Arabia and the United Arab Emirates.
India’s crude oil purchases from the Middle East rose 4% in July, taking the region’s share in India’s total mix to 40% from 38% in June, according to the data.