Russian oil exports to India have reached a new peak, according to data from commodities analytics firm Kpler. The daily shipments to India surged to 2.2 million barrels a day in June, marking the tenth consecutive month of increase. In May, Russia accounted for 46% of India’s total oil imports, a significant jump from the less than 2% mark prior to Western restrictions on purchases of Russian crude.
The rise in Russian oil imports has also pushed up the share of crude imported by India from Commonwealth of Independent States (CIS) members, including Azerbaijan and Kazakhstan. However, Kpler warns that Indian oil imports may decline next month due to refinery infrastructure issues, which could limit its capacity to process heavy Russian crude.
Meanwhile, India’s traditional Middle Eastern suppliers, Saudi Arabia and Iraq, have seen their deliveries lag behind Moscow. This is because New Delhi has been purchasing Russian oil at hefty discounts, following a $60-per-barrel price cap imposed by Western nations.
OPEC’s share of Indian oil imports is decreasing, while Russian supplies are expected to remain high. This is due to an agreement signed in March between Russia’s largest oil producer, Rosneft, and India’s top refiner, Indian Oil Corp, to substantially increase oil supplies and diversify the grades delivered to India.
India, Asia’s third-largest economy and the world’s third-largest oil importer and consumer, has ramped up its purchases after Russia rerouted supplies to Asia in response to Western sanctions over the conflict in Ukraine.
The increase in Russian oil imports has significantly impacted India’s energy market, diversifying its sources beyond the Middle East. This trend is likely to continue as Russia strengthens its ties with India and expands its market share in the country.
In conclusion, Russian oil exports to India have seen continuous growth, reaching a new peak in June. This surge in imports has influenced India’s energy market dynamics, reducing its dependence on Middle Eastern suppliers. However, there may be a temporary decline in Indian oil imports next month due to infrastructure issues. Nevertheless, the long-term outlook shows that Russian supplies are expected to remain high, solidifying Russia’s position as a major oil supplier to India.
Source link
