In December last year, the European Union banned almost all seaborne oil imports from Russia, and two months later, the ban was further extended to refined fuels.
However, despite tough EU sanctions, they have not stopped Russian oil from appearing in Europe. The reason is that India and other countries snapped up cheap Russian crude oil, processed it into diesel and other fuels, and then sold it to Europe at a higher price.
India is buying record volumes of Russian crude, with the country on track to become Europe's top supplier of refined products this month, data from commodity data provider Kpler showed.
Kpler data showed that European imports of refined products from India will soar to more than 360,000 barrels per day, slightly higher than those from Saudi Arabia. Meanwhile, India's crude oil imports from Russia in April will exceed 2 million barrels per day, accounting for nearly 44% of India's total oil imports.
Russia was once the EU's largest diesel supplier. Before the Russia-Ukraine conflict broke out, more than half of Russia's seaborne oil exports went to the European Union and the Group of Seven (G7).
The EU is now facing a dilemma. On the one hand, Europe needs alternative sources of diesel because it has cut off direct supplies from Russia. But on the other hand, if we continue to acquiesce in the sale of Russian oil to Europe in this way, it will not only boost the demand for Russian oil in countries such as India, but also mean higher costs, which in turn will make European refiners unable to buy cheap Russian oil face greater competition.
Viktor Katona, chief crude oil analyst at Kpler, said: “Despite various sanctions, Russian oil is still finding its way back to Europe, with India ramping up fuel exports to the West as a good example. It is inevitable that India imports so much oil from Russia. "
More popular news
CITI Research Lowers Price Forecast for Nickel, Aluminium and Zinc in 2023-2024 But Bets on Higher Copper Prices
Chinese Lithium Giant Denies Rumours, More Players Extend Industry Chain to Downstream Automakers
Goldman Sachs: China will be the only major economy with positive growth this year, bullish bets on new energy vehicles and biotechnology in the long run
Key April Chinese Economic Data Are Released, Including Real Estate Investment, Industrial Added Value and Consumer Goods Retail Sales
SMM Comment: SHFE And LME Base Metals Mostly Rise, Ferrous Metals And Crude Oil Also Outperform, US Dollar Softens
China’s Central Bank Releases Key April Economic Data: RMB Loans Issued to the Real Economy, Newly-Added Social Financing, Newly Added RMB Loans, Balance of M2, M1 and M0, All Recording Enormous Growth
IMF: Asia-Pacific To Contribute More Than 70% To Global Economic Growth, With China Being Key Engine
Dollar, Oil, Gold, Base Metals, Ferrous Metals All Go Down, EIA Cuts Oil Price Forecast
IMF: Western Sanctions against Russia Are Ineffective, European Economy Faces Multiple Challenges
Chinese Property Market Still In Downturn, But On Track To Recover With Improving Economy And Favourable Policies, National Bureau Of Statistics Says
China To Actively Expand Domestic Effective Demand And Boost New Energy Vehicle Sales, National Development And Reform Commission Says
Goldman Sachs, Barclays warn: Fed will not cut interest rates this year
Balance of M2, M1 and M0 All Rise at the End of April, China’s Central Bank Says
India to become Europe’s top supplier of refined oil products after massive purchases of Russian oil
EIA Cuts Brent and WTI Oil Price Forecasts for 2023 as Recession Fears, Inflation and Banking Crisis Overshadow OPEC's Production Cuts
Morgan Stanley, Goldman Sachs and BoA Are Pessimistic, Here Is Why
Global Chip Market Will Decline 20% This Year
Domestic Steel Scrap Prices Plummeted In April
Investment Tycoon Charlie Munger Warns A Storm Is Brewing In US Commercial Property Market And The Golden Age Of Investment Is Over
Chile’s Latest Move Marks One Step Closer to the Establishment of Lithium Version of OPEC
Sunwoda's "Flash Charge Battery" Can Power Electric Cars 1,000 Kilometres on A Single Charge
Massive Aluminium Capacity In China To Be Resumed Or Put Into Operation In H2 2023
"No One Understands Global Economy Better Than I Do"! Tesla CEO Musk Warns of Severe Recession Looming Large
For queries, please contact Michael Jiang at email@example.com
For more information on how to access our research reports, please email firstname.lastname@example.org