India Becomes Top Buyer of Russian Oil, Surpassing China

Record Russian Oil Imports to India

• India overtook China as the largest importer of Russian oil in July 2024
• Russian crude made up 44% of India's overall imports, a new record
• Imports reached 2.07 million barrels per day (bpd), up 4.2% from June and 12% year-over-year
• ESPO Blend crude imports to India jumped to 188,000 bpd

Factors Driving India's Increased Russian Oil Purchases

• Western sanctions on Russia led to discounted oil prices
• Indian refiners capitalizing on these discounts to boost imports
• Shift in trade patterns since Russia's invasion of Ukraine in February 2022
• Increased imports helping to keep global prices stable and control inflation
• Indian refining source: "India's requirement for Russian oil is going to go up as long as there are no further tightening of sanctions"

China's Reduced Russian Oil Imports

• Chinese imports from Russia fell to 1.76 million bpd in July
• Decrease due to lower profit margins for Chinese refiners
• Tepid fuel demand in China, especially in the northeast
• Traditional ESPO Blend crude buyers in China reducing purchases

Impact on Global Oil Trade and India's Import Mix

• Changing flow of Russian ESPO Blend crude from China to South Asia
• Iraq remains India's second-largest oil supplier
• Saudi Arabia and United Arab Emirates follow as third and fourth largest suppliers
• Middle East's share of India's oil imports rose to 40% in July from 38% in June
• India's crude purchases from the Middle East increased by 4% in July