October 7, 2022

Saudi Arabia has once again become India’s second largest oil supplier, overtaking Russia

In August, India bought 8.63 lakh barrels of oil per day from Saudi Arabia. Which is 4.8 percent more than July. On the other hand, 855,000 barrels of oil per day were purchased from Russia in the same month.

Saudi Arabia has again become India’s second largest oil supplier

Saudi Arabia has once again become India’s second largest oil supplier. According to industry data and sources, Saudi Arabia overtook Russia in crude oil supply in August. However, this difference has been very slight. Supplies from Russia fell in August. According to market experts, India’s own crude oil buying strategy is behind the move. In fact, it is believed that Russia has now reduced concessions, where there are some conditions in the agreement with Saudi, in view of both scenarios India is deciding to buy oil according to its calculations. Meanwhile, despite increasing oil purchases from Saudi Arabia, India’s total purchases from OPEC countries fell as India reduced its purchases from African countries.

How much was the purchase of crude oil?

According to the data, India bought 863950 barrels of oil per day from Saudi Arabia in August. Which is 4.8 percent more than July. On the other hand, oil purchases from Russia in the same month were 855,950 barrels of oil per day, which is 2.4 percent less than in July. India’s total oil purchases from OPEC countries fell to 59.8 percent of total purchases, a 16-year low, despite increasing oil purchases from Saudi Arabia. In fact, due to reduced demand for diesel during the monsoon season, India has bought less crude oil and this has affected the African countries involved in OPEC. Purchases from African countries halved in August compared to the previous month. Crude oil imports hit a five-month low in August as demand eased.

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Imports from Russia continue to decline

Between April and August, India’s oil imports from Russia increased manifold to 16 percent of total imports. India has become Russia’s second largest customer after China. However, imports have now declined after reaching a record high in June. In fact, under the agreement, India cannot buy oil from Saudi Arabia beyond a certain limit. At the same time, Russia has also indicated that it may reduce the concession on oil. Due to this India has changed its strategy based on price.

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