According to statistics, India has overtaken the United Kingdom as Europe’s top provider of refined fuel this month while also purchasing record amounts of Russian crude.
Since the ban on Russian oil, Europe has become more dependent on products made from Indian crude oil.
According to Kpler’s figures, European Union imports of refined fuel from India are expected to reach 36,000 barrels per day, passing Saudi Arabia.
For the European Union, the development has both advantages and disadvantages. On the other hand, now that it has cut off direct shipments from Russia, which was formerly its biggest supplier, the EU needs new source of fuel.
In the end, though it results in increased demand for Moscow’s barrels and higher freight prices.
Additionally, it increases competition for European oil refiners who are unable to access cheap Russian crude, and it coincides with increased market vigilance regarding to origin of the region’s import of diesel.
According to Kpler data, Russian crude oil imports to india are projected to reach 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 expressed regarding India’s purchase from Russia during the conflict. India has declared its intention to pursue all available options in order to attain energy security.
According to data from the Union Ministry of Commerce and Industry, despite the western price restriction of USD 60 per barrel, Russia was the leading exporter of crude oil to India by value in februrary.
Russian crude imports totaled USD 3.35 billions in February, followed by Saudi Arabia USD 2.30 billions and Iraq USD 2.03 billions.
The western nations maintained a price restriction on oil in order to keep Russian oil profits in check while preventing a sudden spike in oil prices.
