Cheap Russian Oil Reduces OPEC’s Share in India’s Imports to Record-Low 50%.
In 2023, India, the world’s third-largest oil importer and consumer, witnessed a historic shift in its crude oil import dynamics. Data from trade and industry sources reveals that the annual share of oil from the Organization of Petroleum Exporting Countries (OPEC) in India’s imports hit an unprecedented low, reaching 49.6%, while discounted Russian oil surged to an all-time high.
India has traditionally relied on Middle Eastern nations to fulfil the majority of its oil needs, emphasizing proximity to reduce freight costs. However, altered trade flows stemming from geopolitical tensions and increased costs from traditional suppliers have prompted India to diversify its sources and explore cheaper alternatives, including Russian oil.
The South Asian nation imported an average of 4.65 million barrels per day (bpd) of oil in 2023, marking a 2% increase from the previous year. OPEC’s share in India’s crude oil imports plummeted from 64.5% in the previous fiscal year to about 49.6% in the first nine months of the current fiscal year (April to December).
The surge in Russian oil imports played a pivotal role in this shift. In 2023, Russian oil accounted for approximately 36% of India’s total crude purchases, amounting to 1.66 million bpd. This starkly contrasts with the 2022 figures, where India imported an average of 651,800 bpd of Russian oil.