Russia has emerged as India’s top oil supplier for the first time surpassing Iraq. (file)
New Delhi:
The OPEC (Organization of the Petroleum Exporting Countries) share of India’s oil imports is set to fall at the fastest pace in 2022/23 to the lowest in at least 22 years as cheap Russian oil picks up, as industry sources say The data obtained shows, and the share of major producers may decrease further this year.
OPEC members, mainly from the Middle East and Africa, saw India’s oil market share fall to 59% in the fiscal year to March 2023 from about 72% in 2021/22, a Reuters analysis of data showed. Shown 2001/02.
The data showed Russia overtook Iraq to emerge as the top oil supplier to India for the first time, pushing Saudi Arabia to No.3.
OPEC’s share shrunk as India, which rarely bought Russian oil in the past due to high freight costs, is now the top oil customer for Russian marine oil, which has been seized by Western countries after Moscow’s invasion of Ukraine in February 2022. was rejected. (Graphic: Part of OPEC) India’s oil imports fall to record low, https://www.reuters.com/graphics/INDIA-OIL/jnpwybeogpw/Pasted image 1682075448316.png
India will export about 1.6 million barrels per day (bpd) of Russian oil in 2022/23, the data showed, about 23% of its total 4.65 million bpd imports.
A group known as OPEC and their allies to cut production in May could further reduce OPEC’s share in India, the world’s third-biggest oil importer, later this year if Russian supplies Keeps on increasing.
“Russian crude is already cheaper than similar Middle Eastern grades and it looks like OPEC is hurting itself by cutting production,” said Ehsan Ul Haq, analyst at Refinitiv.
“It will further reduce its market share in Asia.”
The overconsumption of Russian oil raised the share of Commonwealth of Independent States (CIS) countries to a record 26.3%, and reduced that of Middle Eastern and African countries to 22-year lows of 55% and 7.6%, respectively.
In 2021/22, the Middle East’s share was 64%, while Africa’s was 13.4%, the data showed. Latin America’s share falls to a 15-year low of 4.9% in 2022/23.
India’s oil imports in 2022/23 are set to rise 9% from a year earlier, as state refiners turned to exports rather than selling the fuel domestically at below-market rates to meet rising local fuel demand. Scored runs to complete, as the statistics show.
Government data shows, local refiners together will process about 6% more crude in 2022/23 at about 5.13 million bpd.
In March, India exported nearly 5 million bpd of oil, marginally higher than the previous month, with Russian oil accounting for about 36% of total imports, the data showed.
“Russia is also being helped by OPEC’s decision to cut production,” Huq said.
The price of some Russian cargoes is rising above $60 a barrel – a limit imposed by the Group of Seven nations, the European Union and Australia to curb Moscow’s revenues while allowing traders access to Western ships and insurance.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)