Indian imports of Russian oil increased in June as the country continued to seek low-cost energy.
According to Reuters Last month, India imported 950,000 barrels per day, accounting for almost a quarter of total imports. After China and the United States, India is the world’s third largest oil user.
Even after Russia invaded Ukraine, India remained an important customer of Russian oil. Following Western sanctions, Russian crude oil is priced at a significant discount to the Brent international benchmark price.
While Europe and other Western nations have either banned or shunned Russian imports, attractive pricing have enticed Asian purchasers, particularly in China and India. According to Reuters, the two now account for half of Russia’s seaborne oil shipments.
According to Reuters, India’s Russian imports increased 15.5 percent in June over May. Simultaneously, its proportion of oil from Iraq and Saudi Arabia fell by 10.5 and 13.5 percent, respectively.
Russian oil supplies to India and China provide enormous earnings for the government. Russia’s oil export income increased to $20 billion in May alone, returning Moscow’s energy profits to pre-war levels. As a result, its energy sales are expected to reach $285 billion this year.
While Russia revels in its riches, Western economies have suffered greatly as skyrocketing oil and gas prices due to limited supply have generated high levels of inflation and recessionary concerns, particularly in Europe, which is heavily reliant on Russia for energy.
Source: Markets Insider