Russia Loses Ground to Gulf Oil Suppliers in India’s Market

Source: Reuters

Russia Loses Ground to Gulf Oil Suppliers in India’s Market

Persian Gulf countries surpassed Russia in terms of their share of India’s oil imports in September, according to vessel-tracking data.

India’s oil imports from the Middle East rose by 32% in September compared with August, reaching 2.8 million barrels per day and returning to pre-war levels. Middle Eastern crude accounted for 54% of India’s total oil supplies, as New Delhi increased spot purchases and Gulf producers boosted export volumes through the Strait of Hormuz, using ship-to-ship transfers in the Gulf of Oman, The Caspian Post reports, citing Reuters.

Russia remained India’s largest oil supplier, but its export volumes fell by 14% from August to 1.8 million barrels per day. The share of Russian oil in India’s total imports declined from 46.6% to 33.5%.

After losing access to Iranian oil, China has shifted toward Russian crude, putting it in direct competition with India for these supplies.

“Indian refiners will likely continue to favor larger volumes of Middle Eastern oil,” a source at an Indian company told Reuters.

The shift in purchasing priorities is being driven by prices. The cost of Russia’s flagship Urals crude, shipped from Baltic ports, has increased, bringing it close to the price of Middle Eastern grades.

In addition, shipments from the Gulf of Oman to India take less time, while crude availability has improved following the restoration of oil flows through the Strait of Hormuz.

Related news

Russia Loses Ground to Gulf Oil Suppliers in India’s Market

Persian Gulf countries surpassed Russia in terms of their share of India’s oil imports in September, according to vessel-tracking data.