China Is Squeezing India Out of Russia’s Oil Trade
China is buying more Russian oil to replace missing Iranian barrels. The problem for India is that some of those Russian barrels used to be its barrels. China’s seaborne imports of Russian crude are estimated at 1.25 million barrels per day in August, according to Kpler data, cited by Reuters. That is down from 1.423 million bpd in July, but July and August are still China’s strongest months for…
As Russia's oil trade is being redirected away from India, China is stepping in to fill the void. According to Kpler data cited by Reuters, China's seaborne imports of Russian crude oil reached 1.25 million barrels per day in August, down slightly from July's 1.423 million bpd. However, both July and August remain China's peak months for Russian seaborne crude since April.
This shift in trade comes as China's imports of Iranian oil continue to plummet due to the Middle East war and the U.S. blockade. With Iran expected to provide only 340,000 bpd this month, compared to 1.14 million bpd in March, China is now sourcing more of its Russian crude from European ports, accounting for 31% of its seaborne imports in August, up from 22% in June.
As a result, India's share of Russia's oil trade is shrinking. India's imports from Russia's European ports are projected to fall by nearly 770,000 bpd, or 30%, this month, with total crude imports estimated at just 4.17 million bpd in August, the lowest since the Iran war began. This decline in Indian crude imports could lead to a decrease in September fuel exports, as India is a significant exporter of diesel and gasoline to Asia, where both fuels are already in short supply.
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