India has surpassed China to become the world’s largest importer of Russian oil in July, according to trade data comparisons. Russian crude accounted for a record 44% of India’s total oil imports last month, reaching an unprecedented 2.07 million barrels per day (bpd). This marks a 4.2% increase from June and a 12% rise compared to the same period last year.
In contrast, China’s July oil imports from Russia stood at 1.76 million bpd, according to Chinese customs data. The decline in Chinese purchases is attributed to lower profit margins from fuel production, which has reduced demand from Chinese refiners.
Indian refiners have capitalized on discounted Russian oil, which has become available following Western sanctions imposed on Moscow in response to Russia’s invasion of Ukraine. These sanctions have led Western nations to curtail their energy purchases from Russia, creating opportunities for countries like India to secure oil at reduced prices.
“India’s requirement for Russian oil is going to go up as long as there are no further tightening of sanctions,” commented an Indian refining source.
The surge in oil imports has also contributed to a shift in the flow of Russian ESPO Blend crude, which traditionally catered to Chinese buyers but is now increasingly directed toward South Asia. In July, ESPO imports to India jumped to 188,000 bpd, facilitated by the use of larger Suezmax vessels.
Despite the rising Russian oil imports, Iraq remains India’s second-largest oil supplier, followed by Saudi Arabia and the United Arab Emirates.
India’s growing trade relationship with Russia, particularly in oil and fertilizer imports, has played a significant role in stabilizing global oil prices and controlling inflation amid the ongoing conflict in Ukraine.
