India, a BRICS member, has emerged as Europe’s largest supplier of refined fuel, surpassing Saudi Arabia, according to data from trade intelligence firm Kpler. Europe’s refined oil imports from India are set to exceed 360,000 barrels per day in response to new Western sanctions on Russian oil, reshaping global energy trade routes.
Historically, Saudi Arabia has held a premium status in global oil supply, consistently ranking among the world’s top oil producers. However, with European nations seeking alternative sources due to sanctions on Russia, India has swiftly expanded its reach.
Reports from Reuters indicate that prior to the Russia-Ukraine conflict, Europe imported an average of 154,000 barrels of oil daily from Indian refiners. This figure increased to 200,000 barrels per day following the European Union’s February 5 ban on Russian oil. Kpler estimates that India’s Russian oil imports could reach over 2 million barrels per day by April next year, which would account for 44% of India’s total oil imports.
US Sanctions On Russia Open Doors For India
US-led sanctions on Russian oil have enabled India to secure Russian oil at discounted rates, saving the country nearly $7 billion between 2022 and 2024. By conducting transactions in local currencies rather than US dollars, India has also benefited from favorable exchange rates, enhancing its purchasing power.
While India has gained ground, Saudi Arabia is taking measures to strengthen its oil production capabilities. In December, OPEC+, led by Saudi Arabia, plans to add 180,000 barrels daily, with further production increases anticipated through 2025. This adjustment in output is designed to compensate for current production cuts and help the Kingdom regain its position in global markets.
Saudi Arabia’s Strategic Moves To Modernize And Expand
Amid these shifts, Saudi Arabia is investing in its shipping capabilities. The national shipping company Bahri signed a $1 billion agreement with Greece-based Capital Maritime and Trading Corporation (CMTC) to acquire nine advanced Very Large Crude Carriers (VLCCs). These modern carriers will upgrade Bahri’s fleet, enabling faster, more efficient oil transport and supporting Saudi Arabia’s plans to boost its export capacity.
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