India vs China: India has overtaken China to become the largest importer of Russian oil. In the month of July, Russia’s crude oil accounted for 44% of the crude oil imported by India. Chinese refinery companies have imported less crude oil from Russia due to a decrease in profit margin.
According to a Reuters report, Russian crude oil accounted for a record 44 percent of the crude oil imported by India in July 2024. India has imported 2.07 million barrels of crude oil per day, which is 4.2 percent more than in June 2024, while it is 12 percent more than a year ago. China has imported 1.76 million barrels of crude oil per day from Russia through pipelines and shipments.
After Russia’s attack on Ukraine in February 2022, Western countries imposed economic sanctions on Russia and decided to ban the purchase of its oil and gas. After this, India started buying crude oil from Russia at cheap prices and domestic refinery companies also benefited greatly from it. India’s trade with Russia has increased since the war started. Indian refinery companies have imported crude oil from Russia at cheap prices and after refining it, have sold petrol and diesel in the global market, which has given them tremendous profit. This has also helped in controlling the inflation of petroleum products across the world.
After Russia, Iraq is the second largest country to supply crude oil to India, followed by Saudi Arabia and the United Arab Emirates. India’s crude oil purchases from Middle East countries have seen a 4 percent increase in the month of July.
The good news for India is that along with importing crude oil from Russia at cheaper rates, the prices of crude oil are also declining in the international market. Brent crude is currently trading at $76.31 per barrel while WTI crude is trading at $72.15 per barrel.
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