According to industry sources based on shipping statistics, Russia has pushed its way into the top slot as India’s oil supplier in October, demoting Iraq and Saudi Arabia to second and third place, respectively.
India, the third-largest oil consumer in the world after China and the US, imports approximately five million barrels per day of Russian oil, up from less than 1% in 2019. Iraq, who has long been the top supplier, had a 20% stake, while Saudi Arabia had a 16% share.
After Moscow’s invasion of Ukraine on February 24, dealers who were stuck with Russian barrels because of western sanctions gave steep discounts when the price of global benchmark Brent hit $139 per barrel, a 14-year high, on March 8.
The Russian oil glut caused India’s imports to drop to their lowest level in 19 months in September, no doubt helped by reduced monthly imports overall because of planned refinery shutdowns. After falling off in July and August, imports of Russian oil have recovered because, despite the fact that the discounts are not as steep as they once were, the barrels still have value.
Additionally, Indian refiners are looking for deals in advance of the European Union’s ban on Russian energy starting on December 5 and the implementation of the US-proposed price ceiling.
India, the third-largest oil consumer in the world after China and the US, imports approximately five million barrels per day of Russian oil, up from less than 1% in 2019. Iraq, who has long been the top supplier, had a 20% stake, while Saudi Arabia had a 16% share.