India overtook China as the world’s largest importer of Russian oil in July as Chinese refiners bought less due to lower profit margins in fuel production, a comparison of import data showed.
Russian crude accounted for a record 44 percent of India’s total imports last month, rising to a record 2.07 million barrels per day (bpd), up 4.2 percent from June and 12 percent higher than a year ago, data on Indian shipments from commercial and industrial sources showed.
That exceeded China’s July oil imports from Russia of 1.76 million bpd via pipelines and shipping, according to Chinese customs data.
Indian refineries have been gorging on discounted Russian oil after Western nations imposed sanctions on Moscow and cut energy purchases in response to Russia’s invasion of Ukraine.
“India’s demand for Russian oil is set to increase as long as sanctions are not tightened further,” said an Indian refining source.
India’s trade with Russia has increased since Russia launched its war against Ukraine in February 2022, mainly due to imports of oil and fertilizers, a measure that helps keep global prices and inflation in check.
India’s increased purchases are shifting the flow of Russian ESPO Blend crude from traditional Chinese buyers to South Asia. Imports of ESPO to India rose to 188,000 bpd in July thanks to the use of larger Suezmax vessels, the data showed.
Refineries in northeast China are typically the biggest buyers of ESPO due to their proximity, but demand for them has fallen due to weak fuel demand.
Iraq remained the second-largest supplier of oil to India last month, followed by Saudi Arabia and the United Arab Emirates.
India’s crude purchases from the Middle East rose 4 percent in July, raising the region’s share in India’s overall mix to 40 percent from 38 percent in June, the data showed.
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