Latest News

OPEC gains share in India after Russian oil imports fall in December

Trade data revealed that India's Russian imports in December fell to the lowest level since?two? years, as Western sanctions pushed refining companies to look for alternatives. This boosted OPEC?s?share?of imports?to an 11-month peak.

The lower imports of Russian crude oil at a discounted price will likely hit the profits of refiners and consumers in the third largest oil consuming and importing nation in the world and force them to look for suppliers in the Middle East and the U.S.

The data shows that tighter U.S. sanctions and European Union sanctions have slowed Russian oil exports to India. Imports dropped by 22% in December to 1,38 million barrels a day, down from 1.39 million the month before. This has reduced Russia's share of the Indian market to 27,4%, its lowest level since January 2023. OPEC now accounts for 53.2%.

Reliance Industries (the largest Indian buyer) stopped receiving crude oil under its agreement with Rosneft during the last 10 days of December. Its imports of Russian oil fell to a two-year low.

State refiners continued to buy Russian oil from non-sanctioned sources.

RUSSIA RETAINS TOP SUPPLIER

In spite of the decline, Russia was the largest supplier of oil for India in December, and the first nine months of the fiscal year up to March 31, 2026. Iraq and Saudi Arabia were the next two suppliers.

The data shows that some cargoes arriving in December were released in January.

India's Russian imports of oil are expected to be around 1.2 to 1.4 million barrels per day (bpd) in January. The pullback is more likely to be a temporary disruption due to compliance issues than India completely abandoning Russia, according to Sumit Ritola.

The Indian government wants to know the exact amount of crude oil purchased by refiners from Russia and America every week.

OPEC SHARE RISES

OPEC will have a 50% share of India's crude oil imports in 2025. This is up from 49% a year earlier. Russia's part has shrunk to 33.3% compared to 36% ten years ago.

India became the largest buyer of discounted Russian crude oil after the Ukraine War in 2022.

These purchases have sparked a reaction from the West, who have sanctioned Russia's energy industry, claiming that oil revenue helps fund Moscow's military effort.

As punishment for the U.S.'s heavy purchases of Russian oil, it doubled its import tariffs to 50% on Indian goods last year. Both countries are currently in negotiations for a possible trade agreement.

(source: Reuters)