India Surpasses China to become top buyer of Russian oil, imports surge to record high

India has overtaken China as the world's largest importer of Russian oil. According to a Reuters report, Indian imports of Russian crude surged to a record 2.07 million barrels per day (bpd) in July, marking a 4.2% increase from June and a 12% rise year-on-year. This surge has pushed Russian oil to account for a historic 44% of India's total oil imports for the month.

Chinese refiners, facing lower profit margins from fuel production, reduced their purchases, leading to India's new position. In July, China's imports from Russia fell to 1.76 million bpd, as per Reuters citing Chinese customs data. As Western sanctions on Russia continue, Indian refiners have capitalised on discounted Russian oil, with a significant increase in imports of ESPO Blend crude. This variety of crude saw imports to India jump to 188,000 bpd in July, facilitated by larger Suezmax vessels.

In CY24, India sourced the maximum crude oil from Russia in the last two months, while supplies from its traditional suppliers Iraq and Saudi Arabia have depleted to the lowest level in the same period, according to energy cargo tracker Vortexa.

In June, at 1.93 million barrels per day (bpd), Indian imports of crude oil from Russia were the highest, while in July it was 1.81 million bpd. The rise in Russian oil supply to India comes despite narrowing discounts from the country.