New Delhi, November 23, 2023
In a notable development, India’s reliance on oil imports from the Organization of the Petroleum Exporting Countries (OPEC) reached a 10-month high in October. This surge was attributed to increased crude purchases from Saudi Arabia and the United Arab Emirates, prompted by narrowed discounts on Russian oil during the same month, as revealed by trade data.
According to Reuters calculations based on ship tracking data from trade sources, Russia’s market share in India dipped to its lowest point in nine months in October. India, ranked as the world’s third-largest oil importer and consumer, traditionally leans on Middle Eastern producers for a significant portion of its oil requirements. The nation has actively encouraged its refiners to explore cheaper alternatives, aiming to mitigate costs.
Despite Western nations ceasing purchases from Moscow following the Ukraine invasion, India has emerged as the leading buyer of Russian seaborne oil, capitalizing on discounted rates.
Trade data disclosed that India imported approximately 4.7 million barrels per day (bpd) of crude oil in October, marking an 8.4% increase from the previous month. Refiners escalated their purchases to meet heightened local fuel demand during the festive season.
In October, imports from Saudi Arabia and the United Arab Emirates soared to a seven-month high, escalating by around 53% and 63%, respectively, compared to the previous month.
This uptick significantly contributed to OPEC’s share in India’s oil imports, rising from 50% in September to 54% in October, according to the data.
The data also outlined that India averaged importing 1.56 million barrels per day (bpd) of Russian oil in October, reflecting a 1.2% increase from the previous month. However, despite the uptick in volume, the share of Russian oil in India’s October imports contracted from 35% in September to 33%.
For the period of April to October, spanning the first seven months of the fiscal year ending in March 2024, Russia maintained its position as India’s top oil supplier, followed by Iraq and Saudi Arabia.
The surge in Russian oil intake concurrently elevated the Commonwealth of Independent States (CIS) share in India’s oil imports to its peak during April-October, the data disclosed.