Russia is now the India’s No. 1 oil supplier in October: Russia
Russia is now the No. India’s No. 1 oil supplier in October: Russia
According to Vortexa, Russia is now India’s largest oil supplier. This surpasses the traditional dominant suppliers Saudi Arabian and Iraq.
In October, India received 946,000 barrels of crude oil per day from Russia. This was the highest monthly supply ever. It was responsible for 22% of India’s total crude oil imports. This is ahead of Saudi Arabia’s 16.6% and Iraq’s 20.5%. According to Vortexa, a London-based energy intelligence company that tracks oil and gas tankers around the world, and provides freight and inventory analytics, total crude imports increased 5% in October compared to September.
India imported more seaborne Russian oil than the European Union for the first time. The volumes were 34% greater than the EU’s. China was the largest buyer for Russian seaborne crude oil, with 1 million barrels per daily imports in October.
India imported approximately 106,000 barrels of Russian fuel oil per day in October, which is a record.
The deep discounts following the invasion of Ukraine in February triggered a dramatic increase in Russia’s share in the Indian market to 1% in 2021.
West’s Proposed Price Limit
The conflict and subsequent Western sanctions upset the global market, sending prices higher and forcing Russia to sell its crude oil at a steep discount.
According to the latest data from the oil ministry, Eurasia (Russia, Kazakhstan, and Azerbaijan) has increased to 21% over the April-September period, compared with 5% a year ago. This has resulted in a nearly halving of the combined North America, South America, and Africa share to 18% compared to a year ago. The Middle East share however remained almost unchanged at 59%.
A spokesperson from the oil ministry did not respond to a request for comment. Multiple times in the past, India has supported Russia’s oil purchase.
What would happen to international oil prices if India didn’t buy Russian oil or someone else didn’t buy it? CNN’s Hardeep Puri, the oil minister, said Monday that prices could rise to $200 per barrel due to market disruptions. As India has a moral duty to supply its people with energy, he said India will purchase oil and gas from anywhere it can.
Analysts believe that India’s imports of Russian oil could slow down starting December because of shipping constraints. These could be caused by the West’s proposal to price limit Russian oil.
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