India’s imports of Russian crude oil were on track to hit an all-time high of 1.9 million barrels a day in February, said Viktor Katona, lead crude analyst at Kpler, a commodities data and analytics company.
I reckon India’s purchases of Russian crude are here to stay
Viktor Katona, crude oil analyst
That would represent a 35 per cent month-on-month increase and a nearly 60 per cent increase since December.
“One gets a sense of the ever-growing ties between the two countries,” Katona said.
Last year, India emerged as the top importer of Russian crude oil in the wake of the EU ban on oil imports. Crude oil is converted into fuels such as petrol and diesel at its refineries.
“The only impediment that I see for Indian imports of Russian crude is that the current peak demand season will give way to the monsoon season, starting around April-May, when domestic consumption traditionally takes a step back,” Katona said.
“Beyond this, I reckon India’s purchases of Russian crude are here to stay.”
Diversion from EU
The EU’s decision to halt imports of refined fuel from Russia could force Moscow to divert even more crude to Asia, where Bangladesh and Pakistan join the list of countries ready to snap up bargain imports.
India imports around 85 per cent of its oil needs and its overall demand is likely to increase as it’s expected to be the fastest-growing major economy this year.
Indian petroleum refineries have been running at full capacity and have been processing cheap Russian crude into products for its domestic markets as well as for export to Europe and the US.
“I expect Indian refiners to continue maximising their intake of Russian crude as long as it makes economic sense and there are no logistical challenges,” said Vandana Hari, a Singapore-based oil expert and founder of Vanda Insights.
India’s imports of Russian crude oil were on track to hit an all-time high of 1.9 million barrels a day in February, said Viktor Katona, lead crude analyst at Kpler, a commodities data and analytics company.
I reckon India’s purchases of Russian crude are here to stay
Viktor Katona, crude oil analyst
That would represent a 35 per cent month-on-month increase and a nearly 60 per cent increase since December.
“One gets a sense of the ever-growing ties between the two countries,” Katona said.
Last year, India emerged as the top importer of Russian crude oil in the wake of the EU ban on oil imports. Crude oil is converted into fuels such as petrol and diesel at its refineries.
“The only impediment that I see for Indian imports of Russian crude is that the current peak demand season will give way to the monsoon season, starting around April-May, when domestic consumption traditionally takes a step back,” Katona said.
“Beyond this, I reckon India’s purchases of Russian crude are here to stay.”
Diversion from EU
The EU’s decision to halt imports of refined fuel from Russia could force Moscow to divert even more crude to Asia, where Bangladesh and Pakistan join the list of countries ready to snap up bargain imports.
India imports around 85 per cent of its oil needs and its overall demand is likely to increase as it’s expected to be the fastest-growing major economy this year.
Indian petroleum refineries have been running at full capacity and have been processing cheap Russian crude into products for its domestic markets as well as for export to Europe and the US.
“I expect Indian refiners to continue maximising their intake of Russian crude as long as it makes economic sense and there are no logistical challenges,” said Vandana Hari, a Singapore-based oil expert and founder of Vanda Insights.