India overtakes China as Russia’s top oil importer in July

India surpassed China as the top buyer of Russian oil last month, according to Reuters, which cited import data from both nations.

In July, Russian crude exports to India hit a record 2.07 million barrels per day (bpd), outstripping China's imports of 1.76 million bpd, the news agency reported.

India's imports of Russian crude increased by 12% compared to the previous year, while China, the world’s largest crude oil importer, saw a 7.4% decline in its imports during the same period. The drop in China's imports was linked to reduced processing margins at refineries and lower fuel demand.

Data on shipments from trade and industry sources

Data on Indian shipments from trade and industry sources revealed that Russian crude imports increased by 12% year-on-year to 44% of India's total imports last month, reaching a record high of 2.07 million barrels per day (bpd). India's trade with Russia has increased, primarily due to oil and fertilizer imports since the beginning of Russian-Ukraine in February 2022.

The imports increased 4.2% from June. According to Chinese customs data, India's July oil imports from Russia exceeded China's 1.76 million bpd, which included both pipeline and shipment deliveries. Indian refiners have been taking advantage of discounted Russian oil following Western nations' sanctions against Moscow and their reduced energy purchases in response to Russia's invasion of Ukraine.

The growing Indian purchases

The growing Indian purchases are altering the flow of Russian ESPO Blend crude from its traditional Chinese buyers to South Asia. In July, ESPO imports to India surged to 188,000 bpd, facilitated by the use of larger Suezmax vessels, according to the data.

Refiners in northeast China, typically the largest ESPO buyers due to their proximity, have experienced a decline in demand as a result of weak fuel demand. Iraq remained the second-largest oil supplier to India last month, followed by Saudi Arabia and the United Arab Emirates.

The data showed that India's crude purchases from the Middle East increased by 4% in July, raising the region's share in India's overall mix from 38% in June to 40%.

Others oil suppliers to India

Iraq continued to be the second-largest oil supplier to India last month, followed by Saudi Arabia and the United Arab Emirates.

Most of the increase came from state-operated fields in Basra, led by Majnoon, which increased production from 69,000 bpd in May to 177,000 bpd in June, and then further up to 229,000 bpd in July, according to oil officials familiar with the field.

Most of the increase came from state-operated fields in Basra, led by Majnoon, which increased production from 69,000 bpd in May to 177,000 bpd in June, and then further up to 229,000 bpd in July, according to oil officials familiar with the field.

While Saudi Arabia charges ahead with oil production cuts and Russia keeps crude flowing to fund its invasion of Ukraine, one country is quietly chalking up wins in the oil market: the United Arab Emirates.

The upward revision of the UAE’s quota will take the Emirates’ production up by 200,000 barrels per day (bpd) in 2024 to 3.2 million barrels. It comes as oil prices mount a strong comeback this summer, with Brent crude, the international benchmark, hitting safely above the symbolic $80 per barrel threshold.

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