In May, Russia sold 1.96 million barrels a day of crude oil to India. At the same time, Saudi Arabia’s share, another major supplier to India, has shrunk. Russia’s oil is in huge demand thanks to rebates.
Russian oil exports to India increased significantly in May. Reported citing ship tracking data Bloomberg about a 15 percent increase compared to April. India is said to have imported 1.96 million barrels a day from Russia over the past month. As a result, Saudi Arabia, the largest oil producer among OPEC countries, is said to have been deprived of a part in the Indian market. Saudi crude oil exports to India have fallen to their lowest level since 2021.
India increases oil imports from Russia 14-fold
Analysts point to discounts as the main reason for the increase in imports from Russia. In April, the average price of Russian oil was $68.21 per barrel, according to the Indian Ministry of Trade. Ural and Sokol varieties were the most in demand last month, according to Serena Huang, an analyst at ship-tracking company Vortexa. Export volumes are expected to continue to rise in June and July.
“Indian oil refiners continue to show an insatiable appetite for Russian crude amid price discounts as it compares favorably to Middle Eastern supplies.”
India paid an average of $86.96 a barrel for oil from Saudi Arabia in April, while crude from Iraq cost $77.77 a barrel.
Earlier in March, Russia’s largest oil producer Rosneft signed an agreement with Indian Oil Corporation, the country’s largest refiner. This is aimed at significantly increasing oil shipments to India and diversifying oil types.
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