An old friend of India Russia (Russia) has become the country’s second largest oil supplier. There was a time when India imported only 1% of its oil from Russia. Russia now ranks second behind Saudi Arabia in terms of oil supplies. India is currently the largest importer of oil from Iraq. Russia is actually offering a discount of $ 30 per barrel. India is taking full advantage of this discount. Countries such as Europe and the United States have imposed strict sanctions on Russia over its attack on Ukraine. Russia is a major producer of oil. In that case, he is selling his oil at a discount. India took advantage of this opportunity and started importing large quantities of oil from its old friend regardless of the world.
Industry data show that the country’s refining companies have started buying Russian crude oil available at huge discounts after the Ukraine war. Indian refining companies bought about 25 million barrels of Russian crude in May. It accounts for 16 per cent of India’s total crude oil imports.
The share reached 5 per cent for the first time in April
For the first time in April, Russia’s share of total crude oil imports through the Indian Ocean reached five percent. According to the data, it was less than one per cent in the first quarter of last year, i.e. in 2021 and 2022. India is the world’s third largest importer and consumer of crude oil. India has long defended its intention to buy crude from Russia after Russian President Vladimir Putin ordered an attack on Ukraine.
India buys most of its oil from Iraq
Iraq was India’s top supplier in May and Saudi Arabia is now the third largest supplier. At a time when global energy prices are rising, India has taken advantage of the exemption to increase crude oil imports from Russia. Russian oil is available at a discount of $ 30 per barrel. India is the third largest consumer of oil in the world after the US and China. Crude oil is currently trading at 120 120 a barrel in the international market.
Russia became the second largest supplier
According to a report by GEPL Capital, oil demand in India is on the rise. India needs 4.51 million barrels of oil per day on a daily basis in 2020, which will increase by 5.54% to 4.76 million barrels in 2021. In 2021, India’s annual oil demand was 1737.4 million barrels. India imports 85% of its oil needs. India imports 27 per cent of its oil needs from Iraq, 17 per cent from Saudi Arabia and 13 per cent from the UAE. However, Russia has now replaced Saudi Arabia.
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