India Surpasses China As Top Importer of Russian Oil

August 23, 2024

In July 2024, India became the top buyer of Russian oil, overtaking China. This change happened because China was making less money from refining oil, which led them to buy less Russian crude.

Key Statistics

Russian oil made up a record 44% of India’s total oil imports in July.
India imported 2.07 million barrels of Russian oil per day. This was a 4.2% increase from June and a 12% increase from July 2022.
On the other hand, China’s imports from Russia dropped to 1.76 million barrels per day.

Driving Factors

India’s rise in oil imports is mainly due to:

Russian oil being available at lower prices because Western countries imposed sanctions on Russia after its invasion of Ukraine.
A steady need for Russian oil as long as these sanctions are in place.

Trade Patterns

Since February 2022, India has been buying more from Russia, especially oil and fertiliser. This increase in trade has helped stabilize global oil prices and control inflation. Russian ESPO Blend crude, which was mainly sent to China before, is now increasingly being shipped to India. In July, imports of this crude rose to 188,000 barrels per day, thanks to the use of larger ships called Suezmax vessels.

Regional Supply Trends

Iraq is now India’s second-largest oil supplier, followed by Saudi Arabia and the UAE. Overall, India’s oil imports from the Middle East went up by 4%, increasing the Middle East’s share of India’s oil imports from 38% to 40%.

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