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Published: Jan 27, 2023
Updated: Jan 27, 2023

India's Thirst for Russian Oil: Increased Imports and Opportunities Ahead

As India's crude oil imports hit a record high last year, the country's oil processors are open to buying even more Russian crude if the price is right. This presents a potential outlet for Moscow, especially as a European Union ban on seaborne Russian fuel shipments may weigh on refining rates in the key OPEC plus , producer. India and China have become crucial destinations for Russian oil, as many other countries have shunned shipments due to the war in Ukraine.

India's Growing Appetite for Russian Crude

India's oil processors are looking to increase their imports of Russian crude in the near future, as discounted barrels entice buying and a potential EU ban on seaborne Russian fuel shipments may create opportunities for Indian refiners.

Circular Trade: India's Role in Boosting Profit Margins for Russian Oil

Indian refiners have been able to turn cheap Russian crude into fuels such as diesel, which can then be sold to regions including Europe. This 'circular trade' has been beneficial for both India and Russia, as India takes Russian crude that Western buyers don't want and refining it into products for resale to the West.

Russia's Fuel Oil Flows to India on the Rise

In December, Russia's fuel oil flows to India almost doubled month-on-month to more than 137,000 barrels a day, according to data from Kpler. This increase can be attributed to the product's use in upgrading other more valuable fuels or in power generation.

Opportunities galore

India's increasing demand for Russian oil presents opportunities for both countries in the near future. As India's crude imports hit a record high last year, and with a potential EU ban on seaborne Russian fuel shipments, Indian oil processors are open to buying even more Russian crude if the price is right. This presents a potential outlet for Moscow and helps boost profit margins for Indian refiners.