India to become Europe’s top supplier of refined oil products after massive purchases of Russian oil

Published: May 4, 2023 15:23

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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. "

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