New Delhi : India, according to data from analytics firm Kpler, has now become Europe’s largest supplier of refined fuels this month while simultaneously buying record amounts of Russian crude.
Since Russia’s oil ban, Europe’s reliance on Indian crude oil products has grown. According to Kpler’s data, Europe’s refined fuel imports from India are set to surge above 360,000 barrels a day, edging just ahead of those of Saudi Arabia.
For the European Union, this development is a double-edged sword. On the one hand, the EU requires other diesel sources now that it has cut off direct shipments from Russia, its previous major supplier. However, it ultimately increases demand for Moscow’s barrels while increasing freight costs.
It also means more competition for Europe’s oil refiners, who don’t have access to cheap Russian crude, and it comes amid broader market scrutiny about where the region’s diesel imports are coming from.
According to Kpler data, Russian crude oil arrivals in India are likely to exceed 2 million barrels per day in April, accounting for over 44 percent of the country’s total oil imports.
Russia became a major supplier to India for the first time in 2022-23 (FY23) after offering discounted oil rates during the Ukraine war. Despite Western concerns about India’s imports from Russia during the war, India has taken a firm stance, stating that it is considering all alternatives to achieve energy security.
Despite the Western price cap of USD 60 per barrel, Russia was the largest value exporter of crude oil to India in February, according to data from the Union Ministry of Commerce and Industry. In February, Russia imported USD 3.35 billion in crude oil, followed by Saudi Arabia at USD 2.30 billion and Iraq at USD 2.03 billion.
The price cap maintained by Western countries was intended to reduce Russian oil income while keeping oil flowing in order to avoid a global price shock.
Source: PTI
