NEW DELHI: India has become Europe's biggest supplier of refined fuels this month while simultaneously buying record amounts of Russian crude, a data analytics firm KPLER read.
Since the ban on Russian oil, Europe has become more dependent on products made from Indian crude oil. As per KPLER's figures, European Union imports of refined fuel from India are expected to reach 360,000 barrels per day, passing Saudi Arabia's somewhat.
For the European Union, the development has both advantages and disadvantages. On the one hand, now that it has cut off direct shipments from Russia, which was formerly its biggest supplier, the EU needs new sources of fuel. In the end, though, it results in increased demand for Moscow's barrels and higher freight prices.
Additionally, it increases competition for European oil refiners who are unable to access cheap Russian crude, and it coincides with increased market vigilance regarding the origin of the region's imports of diesel. As per KPLER data, India's daily imports of Russian crude oil are predicted to reach over 2 million barrels in April, accounting for about 44% of the country's total oil imports.
In 2022–2023 (FY23), Russia became a significant supplier to India for the first time as it began offering oil at a discount during the conflict in Ukraine. Despite the concerns the West expressed regarding India's purchases from Russia during the conflict. India has declared its intention to pursue all available options in order to attain energy security.
According to data from the Union Ministry of Commerce and Industry, despite the western price restriction of USD 60 per barrel, Russia was the leading exporter of crude oil to India by value in February. Russian crude imports totaled USD 3.35 billion in February, followed by Saudi Arabia's USD 2.30 billion and Iraq's USD 2.03 billion.
The western nations maintained a price restriction on oil in order to keep Russian oil profits in check while preventing a sudden spike in oil prices.
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