MOSCOW: Russia elbows out Iraq, Saudi to be India’s top oil supplier

MOSCOW: Russia has muscled its way as India’s top oil supplier in October, relegating Iraq and Saudi Arabia to second and third spots, respectively, according to market reports based on shipping data.

From less than 1% in 2019, Russian oil today makes up 22% of about five million barrels per day shipped in by India, the world’s third-largest oil guzzler after China and the US. In contrast, the share of Iraq, which has been the top supplier for years now, stood at 20% and Saudi Arabia 16%.

Oil imports from Russia surged after Moscow’s February 24 invasion of Ukraine as traders saddled with Russian barrels due to western sanctions offered heavy discounts as global benchmark Brent hit $139 per barrel, a 14-year high, on March 8.

The Russian oil binge pushed the share of West Asian crude in India’s imports to 19-month low in September, aided no doubt by lower monthly imports overall due to planned shutdowns of refineries.

Import of Russian oil have bounced back after a dip in July and August as the barrels still remain attractive due to discounts, even though they are not deep as before.

Also, Indian refiners are hunting for bargains ahead of the ban on Russian energy by the European Union from December 5 and the price cap proposed by the US takes effect.

From less than 1% in 2019, Russian oil today makes up 22% of about five million barrels per day shipped in by India, the world’s third-largest oil guzzler after China and the US. In contrast, the share of Iraq, which has been the top supplier for years now, stood at 20% and Saudi Arabia 16%.