In July 2024, India became the biggest buyer of Russian oil, surpassing China. This happened because China was making less money from refining oil, so they decided to buy less from Russia.
Key Statistics:
- Russian oil accounted for a record 44% of all the oil India imported in July.
- India imported 2.07 million barrels of Russian oil daily, 4.2% more than in June and 12% more than in July 2022.
- Meanwhile, China’s imports from Russia decreased to 1.76 million barrels per day.
Driving Factors:
India’s increase in oil imports is mainly due to two reasons:
- Russian oil is cheaper because Western countries imposed sanctions on Russia after it invaded Ukraine.
- India continues to need Russian oil, especially as long as these sanctions are in place.
Trade Patterns:
Since February 2022, India has been buying more products from Russia, especially oil and fertilizers. This rise in trade has helped keep global oil prices stable and control inflation. A type of Russian crude oil called ESPO Blend, which used to go mostly to China, is now increasingly being sent to India. In July, the amount of this crude oil that India imported rose to 188,000 barrels per day, with the help of larger ships called Suezmax vessels.
Regional Supply Trends:
Iraq is now India’s second-biggest oil supplier, followed by Saudi Arabia and the UAE. Overall, India’s oil imports from the Middle East increased by 4%, raising the Middle East’s share of India’s total oil imports from 38% to 40%.
