https://sputniknews.in/20250106/russian-oil-exports-to-india-whats-the-outlook-for-2025-8632441.html
Russian Oil Exports to India: What's the Outlook For 2025?
Russian Oil Exports to India: What's the Outlook For 2025?
Sputnik India
Russia has held more than a one-third share in India's oil basket since mid-2022, with New Delhi saving billions of dollars from its procurement of black gold... 06.01.2025, Sputnik India
2025-01-06T18:33+0530
2025-01-06T18:33+0530
2025-01-07T11:52+0530
sputnik opinion
global oil production
indian oil corporation ltd
russian oil
oil exporters
india
government of india
russia
sanctions
western sanctions
https://cdn1.img.sputniknews.in/img/07e7/08/09/3489485_0:0:2000:1125_1920x0_80_0_0_d8263fea6960b3d761448f81f54b2ac1.jpg
Russia was India's top crude supplier in 2023 and 2024 and is on course to complete a hat-trick at the No.1 position in the world's largest democratic nation's oil market in 2025, energy experts have said.According to Sumit Ritolia, Senior Oil Refining Analyst at global trade intelligence firm Kpler, Russian crude remains a linchpin in India's energy strategy, driven by its cost-effectiveness and India's heavy reliance on imports for over 85% of its crude needs.Further, India's fuel demand is projected to grow at 4% annually, primarily driven by industrial growth and increased fuel consumption, creating ample opportunities for sustained Russian crude supply, the commodity pundit explained.Yet the competitive landscape in 2025 will intensify as the Middle Eastern and African crude suppliers are expected to accelerate efforts to reclaim market share, leveraging price competitiveness and proximity advantages, he underscored.Meanwhile, Arpit Chandna, a Customer Success Manager with Refinitiv, a London Stock Exchange Group (LSEG) company, agreed with Ritolia's assessment.He pointed out that Petroleum Planning & Analysis Cell's (PPAC) data released in November 2024, states that the average monthly volume of crude oil imported by India in 2024 was 19,820 KT, approximately 3.5% higher than the average volume of 19,152 KT in 2023.Russia contributed more than 36% on average to Indian imports, followed by Iraq at around 19%, and Saudi Arabia at 12%, with the UAE and the US trailing at around 8% & 5% respectively, Chandna highlighted.It is worth noting that Western countries stopped imports of Russian oil after the US and its European allies imposed unilateral economic sanctions on Moscow in the aftermath of its special military operation in Ukraine.However, Asian giants China and India have continued to acquire large volumes of crude from Russia. While it has benefited the Russian economy, shielding it from the effects of Western sanctions, it has also helped a nation like India to keep inflation in check.
https://sputniknews.in/20240919/how-russian-oil-fuels-indias-crude-refining-expansion-8172306.html
india
russia
Sputnik India
feedback.hindi@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
2025
Pawan Atri
https://cdn1.img.sputniknews.in/img/07e6/0c/13/139630_147:0:831:684_100x100_80_0_0_8fa2b25903e7787fe6a2698552c167df.png
Pawan Atri
https://cdn1.img.sputniknews.in/img/07e6/0c/13/139630_147:0:831:684_100x100_80_0_0_8fa2b25903e7787fe6a2698552c167df.png
News
en_IN
Sputnik India
feedback.hindi@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
Sputnik India
feedback.hindi@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
Pawan Atri
https://cdn1.img.sputniknews.in/img/07e6/0c/13/139630_147:0:831:684_100x100_80_0_0_8fa2b25903e7787fe6a2698552c167df.png
global oil production, indian oil corporation ltd, russian oil, oil exporters, india, government of india, russia, sanctions, western sanctions, vladimir putin, energy prices, international energy agency (iea)
global oil production, indian oil corporation ltd, russian oil, oil exporters, india, government of india, russia, sanctions, western sanctions, vladimir putin, energy prices, international energy agency (iea)
Russian Oil Exports to India: What's the Outlook For 2025?
18:33 06.01.2025 (Updated: 11:52 07.01.2025) Russia has held more than a one-third share in India's oil basket since mid-2022, with New Delhi saving billions of dollars from its procurement of black gold from the Eurasian state.
Russia was
India's top crude supplier in 2023 and 2024 and is on course to complete a hat-trick at the No.1 position in the world's
largest democratic nation's oil market in 2025, energy experts have said.
According to
Sumit Ritolia, Senior Oil Refining Analyst at global trade intelligence firm
Kpler, Russian crude remains a linchpin in India's energy strategy, driven by its cost-effectiveness and India's heavy reliance on imports for over 85%
of its crude needs.
"Russian barrels offer a compelling economic advantage, particularly in an environment where India seeks to optimise procurement costs while meeting its surging demand. While Q4 2024 witnessed a marginal dip in Russian oil shipments due to heightened domestic refinery demand and OPEC-related constraints, With domestic refinery expansions, including the Barmer Greenfield Refinery and capacity increases at Panipat, Koyali and Visakhapatnam in 2025, India's crude import requirements are set to climb further, offering ample room for Russian volumes," Ritolia told Sputnik India.
Further, India's fuel demand is projected to grow at 4% annually, primarily driven by industrial growth and increased fuel consumption, creating ample opportunities for sustained Russian crude supply, the commodity pundit explained.
Yet the competitive landscape in 2025 will intensify as the Middle Eastern and African crude suppliers are expected to accelerate efforts to reclaim market share, leveraging price competitiveness and proximity advantages, he underscored.
"While Russia's dominance may face some headwinds, its strategic pricing and India's burgeoning energy needs position it to remain a top-tier supplier through 2025," Ritolia asserted.
Meanwhile, Arpit Chandna, a Customer Success Manager with Refinitiv, a London Stock Exchange Group (LSEG) company, agreed with Ritolia's assessment.
He pointed out that
Petroleum Planning & Analysis Cell's (PPAC) data released in November 2024, states that the average
monthly volume of crude oil imported by India in 2024 was 19,820 KT, approximately 3.5% higher than the average volume of 19,152 KT in 2023.
Russia contributed more than 36% on average to Indian imports, followed by Iraq at around 19%, and Saudi Arabia at 12%, with the UAE and the US trailing at around 8% & 5% respectively, Chandna highlighted.
"Based on these trends, both countries have demonstrated a strong business bond, likely to continue in energy exports. In 2025, Indian oil giants like Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) plan to expand their refining capacity, further boosting the chances of Russian oil's increased intake in the South Asian nation," the Delhi-based analyst summed up.
It is worth noting that Western countries stopped imports of Russian oil after the US and its European allies imposed unilateral economic sanctions on Moscow in the aftermath of its special military operation in Ukraine.
However, Asian giants China and India have continued to acquire large volumes of crude from Russia. While it has benefited the Russian economy, shielding it from the effects of Western sanctions, it has also helped a nation like India
to keep inflation in check.
