India overtakes Saudi as Europe’s top refinery supplier
Kpler data has revealed that India has become the largest supplier of refined fuels to Europe, surpassing Saudi Arabia. This comes as a result of Europe’s reduced access to Russian oil and their growing dependence on Indian crude oil products. Europe is set to increase its refined fuel imports from India to over 360,000 barrels a day, however this ultimately yields more demand for Moscow’s crude, which carries freight costs.
India overtakes Saudi Arabia as Europe’s top refinery supplier: Key Points
- Russia’s crude oil imports into India are expected to exceed 2 million barrels a day in April, making up nearly 44% of India’s overall oil imports.
- During the Ukraine war, Russia became a major supplier to India after it offered oil at discounted rates.
- In February, Russia was India’s largest crude oil exporter by value, followed by Saudi Arabia and Iraq.
- This comes despite western countries placing a price cap on Russian oil to curb oil revenues.
Russia, a significant supplier to India
- In FY23, Russia became a significant supplier to India for the first time by offering discounted oil rates amid the Ukraine conflict.
- Despite the West’s concerns about India’s imports from Russia during the war, India has taken a firm stance and asserted that it is exploring all options to ensure energy security.
- According to data from the Union Ministry of Commerce and Industry, Russia was the top exporter of crude oil to India in terms of value in February, surpassing the Western price cap of USD 60 per barrel.
- In February, India imported crude oil worth USD 3.35 billion from Russia, followed by Saudi Arabia at USD 2.30 billion and Iraq at USD 2.03 billion.
The Western countries implemented the price cap to restrict Russian oil revenues while maintaining the flow of oil to avert a global price shock.