Business
Asian Countries Increase Imports of Russian Oil as China and India Lead the Way – Times of India
Asian crude imports reached a record high in July, mainly driven by China and India importing large volumes of discounted Russian oil. According to data compiled by Refinitiv Oil Research, Asia received a total of 27.92 million barrels per day (bpd) in July, surpassing the previous record set in May. China accounted for a significant portion of Asia’s imports, with estimates suggesting that China imported 12.04 million bpd in July, marking the third consecutive month with imports above 12 million bpd. Despite a decrease from June, Russia remained China’s top supplier with pipeline and seaborne arrivals of 2.04 million bpd in July. However, both Russia and Saudi Arabia, the second-largest supplier to China, experienced lower imports, which is likely due to the additional output cuts implemented by the OPEC+ group of exporting countries. China has increased its volumes by purchasing from other producers such as Angola and Oman. The market is now questioning whether Chinese refiners will reduce imports and utilize their ample stockpiles as crude prices continue to rise.
Outside of China, other major Asian buyers also increased their imports in July. India saw imports reaching a five-month high of 4.94 million bpd, with a significant portion coming from Russia. However, lower Russian output and higher export prices may potentially dampen India’s demand for Russian crude in the coming months. Japan and South Korea also saw an increase in oil imports in July.
It is important to note that the crude imported in July was likely arranged in a window between March and May when crude prices were declining. The recovery in prices since then may impact the cost of imports in the future and potentially reduce the appetite for oil among Asian buyers, particularly India.
Overall, the rise in Asian countries’ imports of Russian oil, led by China and India, highlights their reliance on discounted crude to meet their energy needs. It also underscores the volatility in global oil markets and the influence of geopolitical factors on oil trade.
Unique Perspective: With China and India leading the way, the increasing imports of Russian oil by Asian countries demonstrate their strategic efforts to secure affordable energy resources. By diversifying their crude oil suppliers, these countries aim to mitigate risks and ensure stable energy supplies for their growing economies. This trend also reflects Russia’s expanding role as a major player in the global oil market, strengthening its relationships with key Asian markets.
