Russia Captures Record Share of India’s Oil Market

Last month, Russia captured the largest share of India's oil market, with crude oil imports from the nation accounting for over 50% of total imports, according to Reuters. This figure marked a 62.4% increase from the previous year and represented 50.83% of India's total oil imports, a world-leading position for the energy-rich country. However, July's imports were slightly lower than the June average of 2.6 million barrels daily, which remained the highest monthly average for Russian oil shipments to India.

Prior to the U.S. sanction waiver expiring, Kpler estimated that Russian oil flows to India averaged 2.45 million barrels daily in July. Despite this, Russia remained India's largest oil supplier, followed by the United Arab Emirates and Saudi Arabia. Nevertheless, both UAE and Saudi Arabia shipped significantly lower volumes compared to Russia, at 617,000 barrels daily for UAE and 586,000 bpd for Saudi Arabia.

Russian oil flows to India have surged since the beginning of India's new fiscal year on April 1, averaging over 2 million barrels daily and accounting for more than 42% of India's total oil imports during the period. This is a marked increase from the 37% share Russian oil held a year earlier. However, this dominance may be challenged by the latest U.S. sanctions, which impose 100% tariffs on imports from countries that purchase Russian crude. The bill has passed the Senate but awaits approval from the House of Representatives.

The sanctions' impact on India's oil imports from Russia could be challenging due to limited alternative sources, especially considering the ongoing Middle East conflict and record U.S. exports.