India overtakes China as top importer of Russian oil in July

India replaced China as the world’s largest importer of Russian oil in July, with Russian crude accounting for a record 44 per cent of India’s total imports, reaching 2.07 million barrels per day (bpd). This represents a 4.2 per cent increase from June and a 12 per cent rise from a year ago, according to Indian trade and industry data.

China’s imports from Russia totaled 1.76 million bpd via pipelines and shipments, as reported by Chinese customs data. The reduction in Chinese imports is due to lower profit margins from producing fuels.

Indian refiners have been snapping up discounted Russian oil following Western sanctions imposed on Moscow in response to its invasion of Ukraine. An Indian refining source stated, “India’s requirement for Russian oil is going to go up as long as there are no further tightening of sanctions.”

Since the conflict began in February 2022, India’s trade with Russia has surged, mainly driven by oil and fertilizer imports, which have helped stabilize global prices and control inflation.

The flow of Russian ESPO Blend crude has shifted from traditional Chinese buyers to South Asia, with imports to India rising to 188,000 bpd in July due to the use of larger Suezmax vessels.

Demand for ESPO Blend in northeast China, typically a major buyer due to proximity, has diminished because of weak fuel consumption.

In July, Iraq continued as India’s second-largest oil supplier, followed by Saudi Arabia and the United Arab Emirates. India’s crude purchases from the Middle East increased by 4 per cent, raising the region’s share in India’s oil mix to 40 per cent from 38 per cent in June.

Attribution: Reuters

Subediting: Y.Yasser