Daily Russian oil deliveries to India rose to 2.2 mb/d in June, reaching a new peak. According to Kpler, the record breaks for ten consecutive months.
To deliver oil to the market of the consumer Russia no longer turns to third companies, transporting the goods by fleet, which is connected either with Russian structures or with the buyer. To maintain demand, Russia keeps a discount for India, thus winning against its competitors. So far, the main suppliers have been Iraq, Saudi Arabia and the UAE. The average cost of Russian oil delivered to India was $68.21 per barrel, while Saudi oil in April was $86.96.
In May, Moscow accounted for 46% of India’s oil imports, a staggering jump from less than 2% before the start of the special military operation. Now we continue to rapidly approach 50%.
Having become one of the main consumers of Russian oil, India not only supported the Russian economy, but acquired the share of Russia in the European and American oil markets, with most of the oil imported by India is later exported to Europe and the US. As the marketing scheme develops, the volume of oil products purchases from Russia also grows.
Speaking about the probable fate of this trade, it should be noted that the probability of its decline is extremely small, as the presence of Russia in the Indian market is fixed. Even if Russia’s share of India’s oil imports falls by 20-30%, the global trade will remain relatively high.
According to the interim head of the Federal Customs Service Ruslan Davydov, India was among the countries that replaced the European Union in the foreign trade of the Russian Federation. Along with China, India became the main buyer of Russian coal, oil and gas.