India is gradually overtaking China on all fronts. Foreign companies from China are setting up their plants in India. Now comes news that India overtook China as the world’s largest importer of Russian oil in July as Chinese refiners were buying less due to lower profit margins in fuel production, a comparison of import data showed.
Indian shipments data from trade and industry sources showed that Russian crude oil accounted for a record 44% of India’s total imports last month, rising to a record 2.07 million barrels per day (bpd), up 4.2% from June and 12% higher than a year ago. This surpassed China’s oil imports from Russia in July by 1.76 million bpd via pipelines and shipping, according to Chinese customs data.
This is how India turned things around
Indian refiners have been eyeing Russian oil sold at a discount after the West imposed sanctions against Moscow and reduced its energy purchases in response to Russia’s invasion of Ukraine. An Indian refining source said that unless sanctions are further tightened, India’s need for Russian oil will continue to rise. India’s trade with Russia has increased since Russia launched the war against Ukraine in February 2022, mainly due to imports of oil and fertilizers, a move that helps curb global prices and control inflation.
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What does the report say?
India’s growing purchases are replacing the flow of Russian ESPO Blend crude oil into South Asia from traditional Chinese buyers. ESPO imports to India rose to 188,000 bpd in July due to the use of larger Suezmax vessels, the data showed. Refineries in northeast China are typically the biggest buyers of ESPO due to their proximity, but their demand has declined due to lower fuel demand.
Iraq remained India’s second-largest oil supplier last month, followed by Saudi Arabia and the United Arab Emirates. India’s crude oil purchases from the Middle East rose 4% in July, the data showed, taking the region’s share in India’s overall mix to 40% from 38% in June.
