Russian Oil Exports to India Hit All-Time High, Leaving Behind Traditional Suppliers
© Sputnik / Maksim Bogodvid
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After Western countries stopped importing Russian oil as part of sanctions on Moscow over its special military operation in Ukraine, India became one of its top buyers.
India bought a record 1.6 million barrels of crude oil per day from Russia in February, overtaking the combined quantity of petroleum products from Iraq and Saudi Arabia, traditionally its two largest suppliers.
For a fifth month in a row, Russia has emerged as the largest supplier of oil to India, shipping 35 percent of the overall crude New Delhi imported in February, according to data from cargo tracker firm Vortexa.
Indian refiners have become major clients for discounted Russian barrels after Western countries, including the European Union members, chose to shun Russian crude. Moscow responded by selling crude to New Delhi at a discounted price.
For a fifth month in a row, Russia has emerged as the largest supplier of oil to India, shipping 35 percent of the overall crude New Delhi imported in February, according to data from cargo tracker firm Vortexa.
Indian refiners have become major clients for discounted Russian barrels after Western countries, including the European Union members, chose to shun Russian crude. Moscow responded by selling crude to New Delhi at a discounted price.
The share of Russian crude in India's oil market was less than 1 percent before the Ukraine crisis began in February 2022. Since then, however, India's share of oil imports from Russia has been continuously rising and now stands at over one-third of all oil India consumes.
With Russian exports to India demonstrating phenomenal growth, New Delhi's purchases from Saudi Arabia and the United States have dwindled considerably. While imports from the middle eastern nation slipped as much as 16 percent compared to the previous month, American barrels saw a decline of 38 percent.
Following Russia in the list of the largest crude oil suppliers to India are Iraq, Saudi Arabia, and the United Arab Emirates (UAE). At 939,921 barrels per day (bpd), Iraq is in second place, with Saudi holding the third spot with a supply of 647,813 bpd in the previous month.
The UAE displaced the US to take fourth place, supplying 404,570 barrels per day to India. The US shipped 248,430 bpd, registering a monumental decline from 399,914 barrels per day in January 2023.
"Indian refiners are enjoying a boost in refining margins from processing discounted Russian crude," Vortexa's head of Asia-Pacific analysis, Serena Huang said in a statement.
She also added that as long as Indian refiners are getting Russian crude at a discount, at a lesser price from producers elsewhere in the world, they would continue to buy it.
"Refiners' import appetite for Russian barrels are likely to remain robust as long as the economics are favorable, and financial and logistical services to support the trade are available," she concluded.
The UAE displaced the US to take fourth place, supplying 404,570 barrels per day to India. The US shipped 248,430 bpd, registering a monumental decline from 399,914 barrels per day in January 2023.
"Indian refiners are enjoying a boost in refining margins from processing discounted Russian crude," Vortexa's head of Asia-Pacific analysis, Serena Huang said in a statement.
She also added that as long as Indian refiners are getting Russian crude at a discount, at a lesser price from producers elsewhere in the world, they would continue to buy it.
"Refiners' import appetite for Russian barrels are likely to remain robust as long as the economics are favorable, and financial and logistical services to support the trade are available," she concluded.
