Russian oil slashes OPEC’s share of Indian market to 22-year low

OPEC`s percentage of India’s oil imports fell on the quickest tempo in 2022-23 to the bottom in at the least 22 years, as consumption of less expensive Russian oil surged, records received from enterprise reassets show, and the foremost producers’ percentage may want to reduce similarly this 12 months.

Members of the Organization of the Petroleum Exporting Countries (OPEC), specially from the Middle East and Africa, noticed their percentage of India’s oil marketplace slide to 59% withinside the monetary 12 months to March 2023, from approximately 72% in 2021-22, a Reuters evaluation of the records that dates returned to 2001-02 showed.

Russia overtook Iraq for the primary time to turn out to be the pinnacle oil dealer to India, pushing Saudi Arabia right all the way down to No. three withinside the closing monetary 12 months, the records showed.

OPEC’s percentage shrank as India, which withinside the beyond hardly ever offered Russian oil because of excessive freight costs, is now the pinnacle oil patron for Russian seaborne oil, rejected through Western international locations following Moscow’s invasion of Ukraine in February 2022.

India shipped in approximately 1.6 million barrels consistent with day (bpd) of Russian oil in 2022-23, the records showed, approximately 23% of its universal 4.sixty five million bpd imports.
The choice through OPEC and their allies, a set referred to as OPEC+ to reduce manufacturing in May may want to similarly squeeze OPEC’s percentage in India, the world’s 1/3 biggest oil importer, later this 12 months if Russian elements live elevated.

“Russian crude is already less expensive than the same Middle Eastern grades and it appears OPEC is harming itself through a discount in output,” stated Refinitiv analyst Ehsan Ul Haq.
“It will similarly erode its marketplace percentage in Asia.”
Higher consumption of Russian oil boosted the proportion of Commonwealth of Independent States (C.I.S.) nations to a document 26.three%, and decreased that of Middle Eastern and African international locations to a 22-12 months low of 55% and 7.6%, respectively.

In 2021-22, Middle East’s percentage become 64% at the same time as Africa’s become thirteen.4%, the records showed. Latin America’s percentage declined to a 15-12 months low of 4.9% in 2022-23.
India’s oil imports in 2022-23 rose 9% from a 12 months earlier, as kingdom refiners cranked up runs to satisfy growing neighborhood gas call for after non-public refiners grew to become to exports in preference to promoting gas at below-marketplace charges domestically, the records showed.

In March, India shipped in almost five million bpd of oil, marginally better than the preceding month, with Russian oil accounting for approximately 36% of universal imports, the records showed.
“OPEC’s output reduce choice is assisting Russia as well,” stated Haq, including the deliberate deliver reduce has lifted international oil expenses and on the equal time narrowed the reductions for Russian oil in opposition to Brent and Dubai benchmarks.
Some Russian cargoes are being priced above $60 a barrel – a cap imposed through the Group of Seven international locations, European Union and Australia to diminish Moscow’s sales at the same time as permitting investors to get admission to western ships and insurance.