New Delhi, India (TEH) – In a significant shift in the global oil market, Russia has overtaken Saudi Arabia as the leading supplier of crude oil to India, one of the world’s major importers. The change comes as Saudi Arabia has reduced its production by 1 million barrels per day (bpd) on top of OPEC+ cuts, leading to a 34% drop in India’s crude oil imports from the kingdom in July.
According to data from Vortexa’s cargo tracking system, cited by Moneycontrol, Russia’s domestic raw materials have rapidly conquered the market, pushing out competitors, particularly Saudi Arabia. This shift has allowed Russia to retain its position as the main supplier of strategic raw materials to India, with the country importing 1.9 million bpd of Russian oil. This figure far exceeds the performance of other importers, with Russia supplying more oil to India than the Middle East kingdom and Iraq combined.
Jay Maru, Head of Market Information and Analysis (MENA) at Vortexa, commented on the global crude oil flows in July, highlighting the stability of India’s imports at 4.5 million barrels per day. Unlike China, whose figures fluctuate, India’s imports remained virtually unchanged, but the country continued to reduce consumption of Middle Eastern varieties, replacing them with Russian ones.
Riyadh’s response to this shift has been to attempt to compensate for the losses by raising prices for Asia and increasing shipments of raw materials and products to Europe. This has led to an unofficial historical exchange of markets between partners in the OPEC organization, a move that has not been without challenges for both sides.
Russia’s ability to navigate the situation with sanctions and global restrictions has been a key factor in its success in seizing market share in India. The question now remains open as to whether Saudi Arabia can replicate this success in Europe, a premium market that Moscow has effectively ceded to Riyadh.
The implications of this shift in the oil market are far-reaching, reflecting changes in global demand patterns, geopolitical relationships, and strategic economic decisions. As the world continues to grapple with the complexities of energy supply and demand, the dynamics between major oil producers and consumers will undoubtedly continue to evolve, with potential ramifications for international trade and economic stability.
