India shipped in about 1.6 million barrels per day (bpd) of Russian oil in 2022/23, the data showed, about 23% of its overall 4.65 million bpd imports. The decision by OPEC and their allies, a group known as OPEC+ to cut production in May could further squeeze OPEC's share in India, the world's third largest oil importer, later this year if Russian supplies stay elevated. "Russian crude is already cheaper than the similar Middle Eastern grades and it seems OPEC is harming itself by a reduction in output," said Refinitiv analyst Ehsan Ul Haq. "It will further erode its market share in Asia."
Higher intake of Russian oil boosted the share of
Commonwealth of Independent States (C.I.S.) countries to a
record 26.3%, and reduced that of Middle Eastern and African
nations to a 22-year low of 55% and 7.6%, respectively.
In 2021/22, Middle East's share was 64% while Africa's was
13.4%, the data showed. Latin America's share declined to a
15-year low of 4.9% in 2022/23.
India's oil imports in 2022/23 rose 9% from a year earlier,
as state refiners cranked up runs to meet rising local fuel
demand after private refiners turned to exports instead of
selling fuel at below-market rates domestically, the data
showed.
Local refiners together processed about 6% more crude in
2022/23 at about 5.13 million bpd, government data show. In March, India shipped in nearly 5 million bpd of oil,
marginally higher than the previous month, with Russian oil
accounting for about 36% of overall imports, the data showed.
"OPEC's output cut decision is helping Russia as well," said
Haq, adding the planned supply cut has lifted global oil prices
and at the same time narrowed the discounts for Russian oil
against Brent and Dubai benchmarks.
Some Russian cargoes are being priced above $60 a barrel - a
cap imposed by the Group of Seven nations, European Union and
Australia to curb Moscow's revenues while allowing traders to
access western ships and insurance.
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Reshuffled Oil Trade Routes Opec's share of India's oil imports drop to record low India's oil imports from various regions ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Nidhi Verma; Editing by Florence Tan and Sonali
Paul)
