OPEC’s share of India’s oil imports reached a 10-month high in October, driven by increased purchases of crude from Saudi Arabia and the United Arab Emirates after discounts for Russian oil narrowed during that month, according to trade data.
Russia’s share of the Indian market in October slipped to the lowest in nine months, according to Reuters calculations based on ship tracking data from trade sources. India, being the third-largest global oil importer and consumer, traditionally relies on Middle Eastern producers for the majority of its oil requirements. However, the country has been encouraging refiners to diversify and explore cheaper alternatives to reduce costs.
Notably, India has become the leading purchaser of Russian seaborne oil sold at a discount, taking advantage of this option after Western nations ceased buying from Moscow following its invasion of Ukraine.
India imported about 4.7 million barrels per day (bpd) of crude in October, up 8.4% from the previous month as refiners increased purchases to meet higher local fuel demand during the festive season, the data showed.
Imports from Saudi Arabia and the United Arab Emirates jumped to a 7-month high, up about 53% and 63% respectively in October from the previous month, the data showed. That helped lift the share of the producers in the Organization of the Petroleum Exporting Countries to 54% in October, up from 50% in September, according to the data.
India imported on average 1.56 million barrels per day (bpd) of Russian oil in October, up 1.2% from the previous month, the data showed. Despite the increase, Russian oil’s share in India’s October imports slipped to 33% from 35% in September.
Russia was the top oil supplier to India from April to October, the first seven months of this fiscal year to March 2024, followed by Iraq and Saudi Arabia. Higher intake of Russian oil boosted the share of the Commonwealth of Independent States (CIS) in India’s oil imports to the highest during April-October, the data showed.
