India and China, the world’s top oil users, continue to enjoy heavily discounted Russian crude, which accounted for 80 per cent of oil exported by Moscow in May, the International Energy Agency (IEA) has said in a report. are buying.
“Heavily discounted Russian crude has found new buyers, mainly in Asia. India has increased purchases from almost nothing to nearly 2 million barrels per day, while China has increased purchases by 500,000 barrels per day to 2.2 million barrels per day.” Paris. -based Energy Agency said in its latest oil market report.
Russian-origin marine crude exports averaged 3.87 million barrels per day in May, the highest since Russia invaded Ukraine in February 2022.
“In May 2023, India and China accounted for nearly 80 per cent of Russian crude exports,” the IEA said.
In return, Russia imported 45 percent and 20 percent of its crude oil to India and China, respectively. Russia’s main crude export markets to the east in Europe banned imports and the G7 imposed shipping restrictions, Russian More than 90 per cent of ocean crude is now headed to Asia, up from pre-war levels of 34 per cent. India’s Russian oil imports were up 14 per cent from April and the flow of Russian crude into the country The incentive to buy cheap Russian crude rests on deep discounts.
Russia’s main crude export grade Ural averaged US$26 a barrel against discount-dated Brent in the first three weeks of May.
This was compared to $3.70 per barrel in January 2022. The IEA projected Indian GDP to grow by 4.8 per cent in 2023, rising to 6.3 per cent in 2024 before strengthening to an even stronger 7 per cent in 2025-28.
It added, “Growth will be fueled by favorable demographics and a growing middle class.”
“India is set to overtake China in terms of global year-on-year oil demand growth in 2027. Fastest growing economy in the world, overtaking China to become world’s most populous country in 2023 Is.”
“Although the rate of its expansion has been slowing for decades, population growth probably will not peak until 2065,” the IEA said.
“Indian oil demand will grow by more than 1 million barrels per day between 2022 and 2028, driven by trends such as urbanization, industrialization, and the emergence of a wealthy middle class eager for mobility and tourism.”
Diesel, by far the main fuel, will increase its share of the product mix from 32 percent to 35 percent during the forecast period.
From the beginning of 2023, growing exports from India, the Middle East and China have turned west to European and G7 buyers in the Atlantic basin so that Russian cargoes will now be diverted to former Suez buyers (300,000 barrels per day, or about half of Russian exports). One-third) can be transferred. ), the IEA said.