Saudi Arabia has overtaken Russia to emerge as the second largest oil supplier to India after a gap of three months, while Iraq retained the top spot in August, data from industry and trade sources showed.
India, the world’s third-largest oil importer and consumer, supplies 8,63,950 barrels per day (bpd) of crude oil from Saudi Arabia, up 4.8% from the previous month, while purchases from Russia fell 2.4% to 8,55,950. BPD is gone. data shown.
Despite Saudi’s gains, India’s share of oil from the Organization of the Petroleum Exporting Countries fell to 59.8%, the lowest in at least 16 years as India cut African imports.
India has become Russia’s number 2 oil buyer after China as others cut purchases after Moscow’s invasion of Ukraine in late February.
Both countries, wanting to secure raw materials at a discount compared to supplies from other countries, are seen as mitigating the impact of Western sanctions on Moscow.
New Delhi has not publicly condemned Moscow for its “special military action” in Ukraine. Prime Minister Narendra Modi will meet President Putin on the sidelines of the Shanghai Cooperation Organization summit, a regional security bloc, on Friday.
India’s monthly oil imports from Russia are falling after breaking a record in June as Moscow reduced rebates for its oil while refiners lifted more term supplies.
“In the end you can’t cut Saudi supply because of clauses in term contracts and Russia was able to reduce its discounts because of high demand, especially in Asia,” said Ehsan ul Haq, an analyst at Refinitiv.
India’s total crude imports fell to a five-month low of 4.45 million bpd in August, down 4.1% from July, due to maintenance at some refineries, the data showed.
The high intake of Caspian marine oil, mainly from Kazakhstan, Russia and Azerbaijan, has affected India’s purchases from Africa and other countries.
The share of African oil halved to 4.2% in August, while that of Latin America fell from about 7.7% to 5.3%, the data showed.
“Diesel demand in India is low during the monsoon season, which means imports of West African oil are low,” Haq said.
In August, the United Arab Emirates ranked No. 4, while Kazakhstan replaced Kuwait to become the fifth-largest oil supplier to India, followed by the United States.
The data showed that increased purchases of Saudi and Emirati oil increased the Middle East’s share in India from 54% in July to 59% in August, while the share of CIS countries increased from 23% to nearly a quarter.
The data shows that Russian oil accounted for about 16% of India’s total imports in April-August in the first five months of this fiscal year, compared to 20,000 bpd or 0.5% share a year ago to 7,57,000 bpd. was.
The data showed that the share of CIS countries in India’s April-August oil imports increased from 2.9% to almost 20%.