India tops Russian oil importers, overtaking China

In July, India surpassed China to become the top importer of Russian oil, as Chinese refineries reduced their purchases due to lower profit margins from fuel production.

Data from the shipping and oil sectors revealed that Russian crude accounted for an unprecedented 44% of India’s total imports last month, reaching a record 2.07 million barrels per day. This marks a 4.2% increase from June and a 12% rise compared to the same period last year.

India’s imports surpassed those of China, where customs data indicated that China’s average intake of Russian oil in July was 1.76 million barrels per day through pipelines and other routes.

Indian refineries have been buying large volumes of discounted Russian oil since Western countries imposed sanctions on Moscow and reduced their energy purchases following the outbreak of the war in Ukraine.

Iraq remained India’s second-largest oil supplier last month, followed by Saudi Arabia and then the UAE.

Data showed that India’s crude oil purchases from the Middle East rose by 4% in July, pushing the region’s share of India’s total oil imports to 40%, up from 38% in June.

Russian Oil Production

Russia’s oil production in July exceeded the quotas set by the OPEC+ alliance, according to data released earlier this month. However, the Russian Ministry of Energy pledged to adhere to the supply schedule set by the alliance and compensate for the excess.

Russia’s production in July was lower than in June, but it exceeded targets by about 67,000 barrels per day due to one-off issues with the supply schedule.

The Ministry of Energy stated that Russia would offset this by adjusting production levels in August and September.

OPEC Quota

Russia’s allocated production quota, including voluntary cuts, is set at 8.98 million barrels per day from June to September.

The International Energy Agency reported that Russia’s production in June was approximately 9.22 million barrels per day, down from 9.24 million in May.

The Organization of the Petroleum Exporting Countries (OPEC) estimated Russia’s June production at about 9.14 million barrels per day, a decrease of 114,000 from May.

The Ministry of Energy also noted that Russia would make up for its production surplus since April in October and November, and from March to September of the following year.

Russian Deputy Prime Minister Alexander Novak clarified in July that exceeding the allocated quota had not caused any disputes with other OPEC+ members.