India’s import of Russian crude oil increases 28% month-on-month, in February

2 Mar 2023 , 03:13 AM

In February, India sourced 1.6 million barrels of crude oil daily from Russia, constituting a whopping 35% of its overall imports. This single supply surpassed the combined contributions of Iraq and Saudi Arabia, the nation’s second and third-largest providers, according to Vortexa, an energy cargo tracking service.

Imports from Russia increased 28% over the previous month as the European Union’s embargo on Russian crude made more supplies available to Indian refiners and the G-7 price cap did not completely obstruct trade. 

Due to the high cost of logistics, India has historically been a minor user of Russian oil, importing less than 1% of its crude from Russia in 2021 and none at all in February of last year.

Russia’s recent boost in crude oil exports to India has had a significant impact on Iraq and Saudi Arabia’s market shares, which have fallen from 43% to 34% since the Russian invasion of Ukraine in February 2022. 

This geopolitical event has resulted in a massive restructuring of the global oil trade. As a result, the African and US market shares have also experienced a decline in the Indian market.

Russia’s growing presence in India’s energy sector isn’t just limited to crude oil. The country’s import of refined products from Russia has also increased significantly. For instance, the import of naphtha jumped by a whopping 15 times from 3,800 barrels per day in January to 57,000 barrels per day in February. 

However, imports of Russian fuel oil experienced a 25% decline in just one month, dropping to 123,000 barrels per day in February.

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