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Russia dominated India’s oil imports in 2023-24 regardless of lowering reductions on oil and sanctions from G7 nations for its actions in Ukraine. According to vitality cargo tracker Vortexa, Russian oil now accounts for 35% of India’s whole imports, up from 23% the earlier 12 months.
Meanwhile, different main suppliers like Iraq, Saudi Arabia, UAE, and the US have seen a lower of their market share, states an ET report.Iraq’s share dropped to twenty%, Saudi Arabia to fifteen%, UAE to six%, and the US to three.5%.
In phrases of provide, Russia offered 1.57 million barrels a day in FY24, in comparison with 1 million barrels a day within the earlier 12 months. On the opposite hand, Iraq’s provide decreased to 0.89 million barrels a day from 0.95 million barrels a day, and Saudi Arabia’s provide fell to 0.69 million barrels a day from 0.78 million barrels a day.
Also Read | China pips India to become largest buyer of sea-borne Russian crude at deeply discounted prices
Despite challenges in delivery, Indian refiners proceed to favor Russian crude because of enticing reductions. “What has ensured Russia’s dominance in the Indian market is discount. Otherwise, why would Indian refiners buy from Russia? It takes much longer and costs much more to ship oil from Russia to India,” an oil trade government was quoted as saying.
Discounts on Russian oil have decreased considerably for the reason that starting of the Ukraine battle. Initially, Russian crude (Urals) was offered at a reduction of $30 per barrel to the worldwide benchmark Brent, however now the low cost has narrowed to $2-3 per barrel.
Also Read | Mini-Goldilocks moment! Why Motilal Oswal thinks India is big, bold and blazing
Indian state refiners searching for cost-effective Russian crude oil, whereas avoiding delivery and insurance coverage complexities, initially loved reductions averaging $12-13 per barrel. Within just a few months, this low cost diminished to $5-7. In current months, it has additional decreased to $2-3 per barrel, however stays interesting to refiners striving for financial savings in crude oil procurement.
Meanwhile, different main suppliers like Iraq, Saudi Arabia, UAE, and the US have seen a lower of their market share, states an ET report.Iraq’s share dropped to twenty%, Saudi Arabia to fifteen%, UAE to six%, and the US to three.5%.
In phrases of provide, Russia offered 1.57 million barrels a day in FY24, in comparison with 1 million barrels a day within the earlier 12 months. On the opposite hand, Iraq’s provide decreased to 0.89 million barrels a day from 0.95 million barrels a day, and Saudi Arabia’s provide fell to 0.69 million barrels a day from 0.78 million barrels a day.
Also Read | China pips India to become largest buyer of sea-borne Russian crude at deeply discounted prices
Despite challenges in delivery, Indian refiners proceed to favor Russian crude because of enticing reductions. “What has ensured Russia’s dominance in the Indian market is discount. Otherwise, why would Indian refiners buy from Russia? It takes much longer and costs much more to ship oil from Russia to India,” an oil trade government was quoted as saying.
Discounts on Russian oil have decreased considerably for the reason that starting of the Ukraine battle. Initially, Russian crude (Urals) was offered at a reduction of $30 per barrel to the worldwide benchmark Brent, however now the low cost has narrowed to $2-3 per barrel.
Also Read | Mini-Goldilocks moment! Why Motilal Oswal thinks India is big, bold and blazing
Indian state refiners searching for cost-effective Russian crude oil, whereas avoiding delivery and insurance coverage complexities, initially loved reductions averaging $12-13 per barrel. Within just a few months, this low cost diminished to $5-7. In current months, it has additional decreased to $2-3 per barrel, however stays interesting to refiners striving for financial savings in crude oil procurement.
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