New Delhi: India along with China, the two countries that are the world’s top oil users, continued to buy heavily discounted Russian crude, buying nearly 80 per cent of the oil exported by Moscow in May, cited the International Energy Agency (IEA). Report of.
“Heavily discounted Russian crude has found new buyers mainly in Asia. In its latest oil market report, the Energy Agency said India increased production from almost nothing to 2 million barrels per day, while China increased by 500,000 barrels per day to 2.2 million barrels per day.
Russian marine crude exports in May jumped to 3.87 million barrels per day, the highest figure since Russia invaded Ukraine in February 2022.
As Europe placed sanctions on Russia’s former main crude export markets, with the G7 imposing trade barriers, more than 90 percent of Russian marine crude oil now goes to Asia, up from pre-war 34 percent. exceeds the level.
Russian oil imports into India were up 14 per cent, higher as compared to April as Russian crude flows into the country hit a fresh record high.
The purchase of cheap Russian crude oil is encouraged by heavy discounts. Russia’s main crude export grade Ural for discount dated Brent was at US$26 a barrel in the first three weeks of May, compared with US$3.70 a barrel in January 2022.
According to IEA, Indian GDP will grow at 4.8 per cent in 2023, rising to 6.3 per cent in 2023 as it moves towards a robust figure of 7 per cent in 2025-28.
“Growth will be supported by favorable demographics and an expanding middle class. India is set to overtake China in terms of global year-on-year oil demand growth in 2027,” the IEA said.
The share of diesel, the main fuel in the product mix, will increase from 32 percent to 35 percent during the forecast period.
Earlier in 2023, rising exports from India, the Middle East and China will shift European and G7 buyers west in the Atlantic basin to offset Russian cargoes now going to buyers east of Suez ( 300,000 barrels per day, or about one-third of Russian exports), the IEA said.