Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 14 August 2023 Author: Grzegorz Kuczyński
As Russian Oil Gets Cheaper, India Continues Buying Spree
Never before has India bought so cheap crude oil. More crude supplies from Russia drive oil and fuel consumption in India, which is now the world’s third-largest oil importer.
The average cost of Russian crude landing on Indian shores in June was the lowest since Moscow’s invasion of Ukraine more than a year ago. The average cost of Russian crude landing on Indian shores including freight is $68.17 per barrel, down from $70.17 in May and $100 a year earlier. For India, Russian crude is by far the cheapest option. The average oil price of Iraqi crude was $67.1 per barrel in July. Daily volumes fell to 2.09 million barrels in July, down from 2.11 million barrels a day in June, according to Kpler. They are expected to drop in August to the lowest levels since January. Russian imports are expected to rebound from October, analysts say. However, Russia could be optimistic about its oil exports. India’s oil consumption jumped by 10 percent year on year in the fiscal year (FY) 2022/2023 ended on March 31. Consumption of petroleum products in India increased by 10 percent to around 223 million tons. Strong economic growth, an increase in vehicle sales, and growing industrialization and urbanization led to the higher demand for fuels. India’s oil demand growth was driven by a 13 percent increase in gasoline consumption and a 12 percent increase in diesel consumption. India’s oil import dependence would increase in the coming years, from 78.6 percent in FY 2023 to more than 80 percent within the next four years.
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