India overtook China to become the world’s biggest importer of Russian oil in July. The latest development comes at a time when Chinese refineries reduced their oil purchases due to shrinking profit margins from fuel production. In July, Russian crude accounted for a record 44 per cent of India’s total oil imports, reaching an unprecedented 2.07 million barrels per day (bpd). The figure represents a 4.2 per cent rise compared to June and a 12 per cent increase compared to the same period last year. China’s oil imports from Russia totalled 1.76 million bpd in July, including both pipeline supplies and shipments based on Chinese customs data, according to news agency Reuters.
Also read: After China-Russia, now the FBI has made a big claim about Iran, Trump and Biden-Harris campaigns are being targeted
The imports reflect India’s growing dependence on Russian crude oil, driven by economic benefits and strategic decisions made by Indian refiners. The surge in imports underscores a shift in global energy trade dynamics, with India emerging as a major player in the oil market. Indian refineries are banking heavily on Russian oil sold at a discount after Western countries imposed sanctions against Moscow and cut their energy purchases in response to Russia’s attack on Ukraine.
Has India’s trade with Russia increased?
According to Reuters, an Indian refining source said that unless sanctions are tightened further, India’s need for Russian oil will continue to grow. India’s trade with Russia has increased since Russia launched a war against Ukraine in February 2022, mainly due to oil and fertilizer imports, which help keep a check on global prices and control inflation.
Also read: China-Philippines: Bitterness increased in the South China Sea, China alleges that the Philippines ship hit its ship
India’s ESPO Crude Imports
India’s rising oil purchases are reshaping the flow of Russian ESPO blend crude, traditionally preferred by Chinese buyers, to South Asia. India’s imports of ESPO crude rose to 188,000 barrels per day (bpd) in July, facilitated by the use of larger Suezmax vessels, according to the data. Typically, refineries in northeastern China are the primary consumers of ESPO due to their geographical proximity, but their demand has declined amid sluggish fuel demand. Despite India’s rising imports from Russia, Iraq maintained its position as India’s second-largest oil supplier in July, followed by Saudi Arabia and the United Arab Emirates. Additionally, India’s crude oil imports from the Middle East rose 4 per cent in July, pushing the region’s share in India’s total oil supplies to 40 per cent from 38 per cent in June, according to the data.
