OPEC head sees share of Indian oil imports to grow again

The Organisation of the Petroleum Exporting Countries (OPEC) is poised to win a bigger share of India’s oil imports in the coming decades due to the proximity of its supplies, its secretary general Haitham Al-Ghais told Reuters on Wednesday.

Its dominance was recently eroded by competition from discounted Russian oil. The share of oil from OPEC imported by India dropped from 65 per cent in 2022 to 50 per cent last year, as India became the largest buyer of Russian crude after war in Ukraine.

OPEC members and other producers need to adjust to changing market dynamics since early 2022, with more Russian oil supply to India and Asia, Al-Ghais added.

He emphasised that OPEC Middle East producers are well-suited to supply the Indian market due to their proximity, cost efficiency, and a strong fit between supplier and consumer.

OPEC anticipates Indian demand to more than double by 2045 to 11.7 million barrels per day. India aims to expand its refining capacity to 9 million barrels per day by 2030 from the current 5.02 million barrels per day.