India turns to OPEC as Russian oil drops
Shafaq News/ Russia's share in India’s oil imports is expected to decline in2025, following the imposition of sweeping sanctions by Washington targetingRussian producers and tankers.
The measures, announced last Friday, havedisrupted supplies from the world’s second-largest oil producer to key marketslike India and China, while tightening the availability of oil tankers.
Data revealed that India, the world’s third-largestoil importer and consumer, recorded an oil import volume of 4.84 millionbarrels per day in 2024, marking a 4.3% increase from the previous year.
The share of the Organization of thePetroleum Exporting Countries (OPEC) in India’s 2024 crude imports rose toapproximately 51.5%, compared to 49.6% in 2023, while Russia’s share remainedstable at about 36%, the data showed.
The rising demand for Middle Eastern crudeby Indian refiners comes as Russian supplies dwindle. “The decline in Russianexports has prompted Asian refiners, particularly in India, to pivot towardMiddle Eastern barrels,” said Priti Mehta, a senior research analyst atconsultancy firm Wood Mackenzie.
Notably, Reuters reported last month,citing refining industry sources, that Indian refiners have increased theirpurchases of Middle Eastern oil since late 2024.
December data reflects this shift, withMiddle Eastern oil accounting for around 52% of India’s crude imports, thehighest in 22 months.
Despite the decline in overall Russianexports, Russia remained India’s top oil supplier in December, followed by Iraqand Saudi Arabia.
Russia has maintained its position as aleading supplier in recent years, buoyed by the appeal of discounted Russiancrude following Western sanctions and a price cap imposed on Moscow’s oilexports.
Although OPEC’s share in India’s crudeimports rebounded slightly in 2024, it has faced a consistent decline since2016, as Indian refiners diversified their sources to optimize costs. OPEC’smarket share in India had previously shrunk from 64.5% in 2022 to nearly 50% in2023, as Russian oil gained prominence.