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ESPO imports to India surged to 188,000 bpd in July, facilitated by the use of larger Suezmax vessels
India emerged as Russia's leading oil buyer in July, surpassing China due to reduced Chinese demand amidst shrinking profit margins for fuel production. Trade data indicates that India's total oil imports reached 2.07 million barrels per day (bpd), with Russian crude accounting for a record 44% of those imports. This represents a 12% annual gain and a 4.2% rise compared to June.
In contrast, China’s imports from Russia fell to 1.76 million bpd in July, according to Chinese customs data. Indian refiners have taken advantage of discounted Russian oil, a consequence of Western sanctions imposed on Moscow following its invasion of Ukraine. The shift in trade dynamics is altering traditional oil routes, with Russian ESPO Blend crude—typically favored by northeastern Chinese refiners—being redirected to India. ESPO imports to India surged to 188,000 bpd in July, facilitated by the use of larger Suezmax vessels. India's deepening energy ties with Russia have significantly increased since the onset of the Ukraine conflict in February 2022, with oil and fertilizer imports helping to stabilize global prices and control domestic inflation. The country’s appetite for Russian oil is expected to grow, provided there are no further sanctions tightening.
In the meantime, Iraq remained the second-largest oil supplier to India, after the United Arab Emirates and Saudi Arabia. Crude imports from the Middle East rose by 4% in July, raising the region's share in India’s overall oil mix to 40%, up from 38% in June.
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