Russia consolidates position as top oil supplier to India

A recent OPEC report shows that in June 2024, Russia significantly increased its share of oil exports to India, providing 45% of the country's total oil imports compared to 41% in May. This surge highlights India's growing reliance on Russian crude, and Russia’s role as a major supplier amid shifting global trade dynamics.

Despite narrower discounts in relation to the past two years, Russian crude oil remains attractive to Indian refiners due to its competitive pricing. Current discounts sit at approximately $3–4 per barrel on a delivered-at-port basis, which provides an advantage over supplies from the Gulf region. Russia’s share of the Indian crude oil market surpasses the combined share of India's five largest suppliers from the Middle East Gulf region. However, the overall volume of oil imported by India in June decreased by 13% compared to May, totalling 45 lakh barrels per day.

Additionally, the report notes that Russia supplied 18% of China's total oil imports in June, a slight decrease from 19% in May. Saudi Arabia accounted for 15% of China's imports, while Malaysia and Iraq contributed 13% and 11%, respectively. Despite the slight decline in Russia's share, China's overall oil imports rose by 2% in June, reaching 113 lakh barrels per day.

This shift in oil supply dynamics underscores Russia's strategic pivot towards Asian markets, particularly India and China, as it adapts to the changing landscape of global energy trade. On the other hand, the dependence of these countries on Russian oil reflects broader geopolitical trends and the ongoing realignment of energy partnerships in response to market fluctuations.

Source: TASS