Indian oil import now well diversified
India being one of the biggest oil consumer, naturally is looking for the cheapest offers and Russia being deprived of its traditional markets in Europe, is looking for new markets. So this meeting between best available options and best available offers is driving the trade and the new relationship in the energy sector which is natural. This trend will continue in a structured manner as India will not permit any power to interfere in this.
The G7’s plan to put a cap on the rates of Russian oil prices is narrow-minded and unrealistic, which will definitely affect the global supply chains. consequently will increase the energy rates, galloping projection if this whim is implemented. Russia will simply stop selling oil to those countries which decide to join this initiative as simple as that we will stop the supply of gas. It affects Russia substantially but ultimately it will be Europe who will feel the pain. India will certainly not side with the G7 nefarious plans.
Shri Jaishankar has very clear articulated the imperative to satisfy the needs of the Indian people. Essentially put it is like that West continues to plausibly ignore India’s legitimate national interest just like it did so most of the time at the time of colonialism. Tables have been turned now.
India is the world’s third biggest oil importer and consumer. It has shipped in 863,950 barrels per day (bpd) of crude from Saudi Arabia, up 4.8% from the previous month, while purchases from Russia fell 2.4% to 8,55,950 bpd, the data showed. However India is now Russia’s No. 2 oil buyer after China, as others have cut purchases following Western sanctions. The two countries, keen to secure raw materials at discounts compared with supplies from other countries, are cushioning the impact of western sanctions on Moscow.
Saudi Arabia emerged as the second-biggest oil supplier to India after a three-month gap, overtaking Russia by a thin margin, while Iraq retained the top spot in August, data from industry and trade sources showed. Despite Saudi’s gain, the share of oil from Organization of the Petroleum Exporting Countries in India fell to 59.8%, the lowest in at least 16 years as India cut African imports.
India’s monthly oil imports from Russia declined after hitting a record in June as Moscow has narrowed the discounts offered for its oil while refiners lifted more term supplies. Russia was able to reduce its discounts because of high demand especially in Asia. Also India’s overall crude imports in August declined to a five-month low of 4.45 million bpd, down 4.1% from July, due to maintenance at some refineries, the data showed.
Higher intake of Caspian sea oil, mainly from Kazakhstan, Russia and Azerbaijan, have also reduced India’s purchases from Africa and other countries. African oil’s share in August halved to 4.2% while Latin America’s share fell to 5.3% from about 7.7%, the data showed. As it is India’s diesel demand is lower during the monsoon season, which means low import of west African oil.
In August, the United Arab Emirates stayed at No. 4 while Kazakhstan replaced Kuwait to become fifth-largest oil supplier to India, followed by the United States. Increased purchases of Saudi and Emirati oil raised Middle East’s share in India to 59% in August from 54% in July while that of CIS nations rose to about a quarter from 23%, the data showed.
Russian oil accounted for about 16% for India’s overall imports in April-August, the first five months of this fiscal year, at 757,000 bpd compared with 20,000 bpd a year earlier, or a 0.5% share, the data showed. That lifted share of CIS countries in India’s April-August oil imports to about 20% from 2.9%, the data showed.
The trend of crude oil supply to India will continue, and bilateral trade will strike new records, said Russian Ambassador to India, Denis Alipov, in an interview with ANI.
“No one knows the situation how energy markets look like by the end of the year, we are looking to further expanding our relationship in this area at promoting the ongoing dialogue and cooperation based on long-term arrangements and agreements,” he added.
According to an estimate, there is a steep jump in Russian oil export to India, as it has increased ten times this year and Russian crude oil is now fulfilling almost ten per cent of India’s imported oil consumption.
“The volumes (of trade have reached USD 11.5 billion already in half of the year. We will make and strike possibly a new record in our trade by the year, as we did in the previous one when our trade stood at USD 13.6 billion,” said the Russian Ambassador to India
The Russian envoy said that India and Russia are looking to further expanding the relationship in the energy sector as the situation in future is unpredictable.
Europe and US had expressed reservations about the quantum jump in Russian exports to Asian giants India and China. However India and China are not bothered. Europe itself continues to import gas from Russia because it cannot do without it.