INDIA: India has emerged as the largest supplier of Europe’s refined fuels this month while simultaneously purchasing record amounts of Russian crude, as per the data from analytics company Kpler.
Since the ban on Russian oil, Europe’s reliance on products made from Indian crude oil has increased. According to Kpler’s data, India will soon surpass Saudi Arabia in the amount of refined fuel that Europe imports each day, rising above 360,000 barrels.
The development has both benefits and drawbacks for the European Union (EU). On the one hand, the EU requires other sources of diesel now that it has cut off direct shipments from Russia, which was its primary supply previously. The demand for Moscow’s barrels ultimately increases, which results in higher freight expenses.
It also means that there will be more competition for European oil refiners who are unable to access cheap Russian crude, and it coincides with increased market scrutiny regarding where the region’s imports of diesel are coming from.
According to Kpler data, Russia’s crude oil exports to India are anticipated to exceed 2 million barrels per day in April, accounting for about 44% of the country’s total oil imports.
In 2022–2023 (FY23), Russia became a significant supplier to India for the first time as it began offering oil at a discount during the conflict in Ukraine. Despite the concerns the West voiced regarding India’s purchases from Russia during the conflict, India has adopted a hard stance and declared that it considers all possibilities to attain energy security.
Russia was the biggest crude oil exporter to India in terms of value in February despite the Western price cap of USD 60 per barrel, per data from the Union Ministry of Commerce and Industry. In February, Russia imported $3.35 billion worth of crude, followed by Saudi Arabia and Iraq, each importing $2.30 billion.
The price ceiling that the Western nations maintained was set up to keep Russian oil earnings within limits while preventing a sudden spike in oil prices around the world.
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