Russia becomes India’s second-biggest oil exporter

• Russia overtook Saudi Arabia as India’s second-largest oil supplier in May.
• India got roughly 819,000 barrels per day (bpd) of oil from Russia, compared to 277,00 in April.
• Indian refineries were able to use Russian crude oil due to high freight costs.

DELHI, NEW DELHI: According to trade sources, Russia overtook Saudi Arabia as India’s second-largest oil supplier in May, moving Suadi Arabia to third place.

India got roughly 819,000 barrels per day (bpd) of oil from Russia, according to statistics. According to the data, which is the highest so far, compared to 277,00 in April.

Following Russia’s invasion of Ukraine, which resulted in a sharp reduction in Russian crude, many importers have avoided doing business with the country, which has been punished by Western sanctions.

Due to the high freight costs, Indian refineries were able to use Russian crude oil, giving them an opportunity to buy low-cost crude.

According to the data, 16.5 percent of Russian crude oil was utilised in May, helping to raise the share of oil from C.I.S countries to around 20.5 percent and lowering the part of oil imports from the Middle East to 59.5 percent.

In April, the use of African oil in India increased from 5.9% to 11.5 percent.

“Diesel is calling the tune,” said Ehsan Ul Haq, a Refinitiv analyst. “If you want to raise output of diesel and jet fuel, you need Nigerian and Angolan grades.” Because of the Covid-related shutdowns, China has reduced its imports of Angolan grades, therefore some of these barrels are headed to Europe and others to India.”

Apart from the cheaper Russian barrels, the official selling prices of Middle Eastern barrels are greater.