India surpassed China as the leading consumer of Russian oil in July 2024, changing the global energy landscape. Recent data shows that Russia supplied 44% of India’s oil imports, a record 2.07 million barrels per day. This is up 4.2% from June and 12% from the previous year.
China’s purchases of Russian oil fell to 1.76 mbpd due to reduced refiner profit margins. This shows India’s rising dependence on discounted Russian crude since Western nations sanctioned Moscow for its invasion of Ukraine.
Indian refiners have increased their Russian oil imports due to these discounts. With no new sanctions, India’s demand for Russian crude should remain high. India’s increased commerce with Russia, especially in oil and fertilisers, has helped stabilise world oil prices and inflation.
India’s rise as the largest consumer of Russian oil shows how economic possibilities and geopolitical developments impact global energy markets. As India and Russia strengthen their energy connections, the global oil trade will change.
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