India has surpassed China as the world’s biggest importer of Russian oil in July, a comparison of import data has shown.
New Delhi has been increasing crude purchases due to discounts offered by Moscow as Russia shifts energy exports away from Western markets in response to Ukraine-related sanctions.
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Russian crude accounted for 44% of India’s overall imports last month, rising to a record 2.07 million barrels per day (bpd), 4.2% higher than in June and 12% more than a year ago, according to data on Indian shipments from trade and industry sources.
China’s oil imports from Russia via pipelines and shipments in July totalled 1.76 million bpd, Chinese customs data shows. The drop in purchases by Chinese refiners is due to lower profit margins from producing fuels, data suggests.
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Indian refiners have been increasing purchases of discounted Russian oil since February 2022, after Western nations imposed sanctions on Moscow and cut their energy imports in response to the conflict in Ukraine.
“India’s requirement for Russian oil is going to go up as long as there are no further tightening of sanctions,” an Indian refining source told Reuters.
India’s increasing purchases are changing the flow of Russian ESPO (Eastern Siberia–Pacific Ocean oil pipeline) Blend crude from traditional Chinese buyers to South Asia.
ESPO imports to India jumped in July to 188,000 bpd as larger Suezmax vessels were used, according to shipping data.
Iraq remained the second-largest oil supplier to India last month, followed by Saudi Arabia and the United Arab Emirates.
India’s crude purchases from the Middle East rose 4% in July, pushing up the region’s share in India’s overall mix to 40% from 38% in June, the data showed.