OPEC’s share in India’s crude oil imports edged up in 2024, rising for the first time in nine years, while top supplier Russia’s share remained steady, data obtained from trade sources showed.
Russia’s share in the world’s third-biggest oil importer and consumer is expected to drop in 2025 after Washington last Friday announced sweeping sanctions targeting Russian producers and tankers, disrupting supply from the world’s No. 2 producer to India and China and tightening ship availability.
India imported 4.84 million barrels per day of oil in 2024, up 4.3% from the previous year, the data showed.
The share of Organization of the Petroleum Exporting Countries (OPEC) in India’s 2024 crude imports rose to nearly 51.5%, up from 49.6% in 2023, while Russia’s share in 2024 remained at about 36%, the data showed.
There is higher demand for Middle Eastern barrels from Asia refiners, especially India, due to lower Russian supplies, said Priti Mehta, senior research analyst at consultancy Wood Mackenzie.
Indian refiners have stepped up purchases of Middle Eastern grades since late 2024 as Russian supplies fell, refining sources told Reuters last month.
The share of Middle Eastern oil in India’s December crude imports rose to a 22-month high to about 52%, the data showed.
However, Russia continued to be the top oil supplier to India, followed by Iraq and Saudi Arabia in December.
In recent years, Russia became India’s top supplier as its refiners were drawn to Russian oil sold at a discount after Western nations imposed a price cap and shunned purchases from Moscow. That caused OPEC’s market share in India to shrink to nearly 50% in 2023 from 64.5% in 2022.
OPEC’s share has also been consistently declining since 2016 as Indian refiners diversified their purchases to reduce costs.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
