New Delhi: Beware of Iraq and Saudi Arabia, Russia is making huge inroads in India oil market And possibly the giant has become the biggest supplier to the Asian buyer.
Deprived of many of its traditional European buyers, Moscow is set to deliver between 1 million and 1.2 million barrels a day to the world’s third-largest oil importer this month, according to tanker tracking data compiled by Bloomberg and two oil analytics firms .
This would put it in line with, or slightly above, Iraq, and well ahead of Saudi Arabia. The increase in flows will be viewed with particular dismay by Baghdad, as Iraq’s oil has had to be discounted to compete for market share in Asia.
Refiners in India are pressing cheap Russian barrels in a way they never did before the invasion of Ukraine, making it noticeable even to Russian President Vladimir Putin.
Europe out
Flows to Asia increased as some European companies stopped buying, putting pressure on Russia to find alternative markets.
Vessel tracking statistics vary from provider to provider, depending on various assumptions and underlying information about the cargo. But data from Kepler, Vortexa and Bloomberg all underscore the dominant position Russia has assumed in India.
Kepler data shows Russian oil arrivals in India so far in June averaged 1.2 million barrels per day, a quarter of all crude flowing into the country. Iraq’s daily supply will be around 1.01 million barrels, while Saudi Arabia is supplying 662,000 barrels a day.
Vortex figures show Russian deliveries are 1.16 million barrels a day, up from Iraq’s 1.131 million. Tanker tracking compiled by Bloomberg indicates 988,000 barrels per day will arrive from Russia this month, slightly less than the 1.03 million barrels per day figure from Iraq.
Deprived of many of its traditional European buyers, Moscow is set to deliver between 1 million and 1.2 million barrels a day to the world’s third-largest oil importer this month, according to tanker tracking data compiled by Bloomberg and two oil analytics firms .
This would put it in line with, or slightly above, Iraq, and well ahead of Saudi Arabia. The increase in flows will be viewed with particular dismay by Baghdad, as Iraq’s oil has had to be discounted to compete for market share in Asia.
Refiners in India are pressing cheap Russian barrels in a way they never did before the invasion of Ukraine, making it noticeable even to Russian President Vladimir Putin.
Europe out
Flows to Asia increased as some European companies stopped buying, putting pressure on Russia to find alternative markets.
Vessel tracking statistics vary from provider to provider, depending on various assumptions and underlying information about the cargo. But data from Kepler, Vortexa and Bloomberg all underscore the dominant position Russia has assumed in India.
Kepler data shows Russian oil arrivals in India so far in June averaged 1.2 million barrels per day, a quarter of all crude flowing into the country. Iraq’s daily supply will be around 1.01 million barrels, while Saudi Arabia is supplying 662,000 barrels a day.
Vortex figures show Russian deliveries are 1.16 million barrels a day, up from Iraq’s 1.131 million. Tanker tracking compiled by Bloomberg indicates 988,000 barrels per day will arrive from Russia this month, slightly less than the 1.03 million barrels per day figure from Iraq.
India has defended the Russian purchase, citing its national interest to source cheap crude. The purchase gave a portion to a portion of the cash that Russia obtained from commodity markets, funding its war.
Russia’s incursion into the Indian and Chinese markets is eating up Iraq and Saudi Arabia’s share of the world’s largest oil-consuming region.
Combined deliveries from the two countries to India have fallen by about 500,000 barrels a day since April, as Russian flows picked up, according to tracking data.
“When the price goes up and you are left with no option, you will buy from wherever,” Oil Minister Hardeep Singh Puri told reporters last week. “We have a very well defined understanding of what interests India.”