Russia remains India’s top oil supplier – ministry

Russia has strengthened its position on India’s oil market after New Delhi ramped up purchases in August, the Economic Times reported on Thursday, citing the Indian Commerce Ministry.

According to the data, India’s imports jumped by 114% year-on-year and were worth $4.15 billion in August compared to $1.93 billion in the same month last year.

Overall, Russian crude sales to India between January and August surged 236.9% year-on-year to $29.9 billion.

Meanwhile, deliveries from India’s traditional Middle Eastern suppliers, Saudi Arabia and Iraq, again lagged behind Moscow.

Iraq followed Russia as the country’s second-largest supplier, although its shipments fell by 14.7% to $2.34 billion year-on-year. According to the ministry data, Saudi Arabia, once India’s top crude supplier, saw its August sales plunge by 29.4% to $2 billion. Oil shipments to India from another major exporter, the United Arab Emirates, plummeted by 61.6% in August on an annual basis.

While OPEC’s share of Indian oil imports is declining, Russian deliveries are likely to remain high even with export and output cuts announced by Moscow in a bid to balance global oil prices.

Russia has remained the largest oil supplier to India over the past 20 months mainly due to discounts, following a $60-per-barrel price cap imposed by Western nations.

Asia’s third-biggest economy, also the world’s third-largest oil importer and consumer, ramped up oil purchases after Russia rerouted supplies to Asia in response to Western sanctions over the Ukraine conflict.

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