- Russia overtook Iraq to become the premier oil supplier to India in November according to Reuters.
- Russian flows to India jumped 4% from October to November, an increase of 908,000 barrels per day.
- Russian oil made up 24% of India’s overall imports last month.
Russia overtook Iraq as the premier oil supplier to India in November ahead of a pending price cap on Moscow’s crude set to take hold next month.
India’s imports of Russian crude climbed 4% from October to November, amounting to an increase of 908,000 barrels per day according to a report from Reuters. Overall, Russian crude was 14% of India’s overall imports last month.
A price cap imposed by the G7, Australia and the European Union is scheduled to take hold on December 5, in an effort to starve Moscow of revenue from oil sales.
The cap will also urge participating countries to ban insurance on tankers carrying Russian crude and various other shipping services including brokering and navigation as punishment for the Kremlin’s invasion of Ukraine.
Before the price cap was announced earlier this month, Russian oil had already been flowing at elevated levels to India, with November marking the fifth monthly increase. India has avoided importing large swathes of Russian crude due to pricey logistics associated with purchases, but the discount on Moscow’s crude has become too attractive to pass up.
With the jump in imports, India is now Russia’s second-largest customer, second only to China. India also leaned less on both Iraq and Saudi Arabia last month, with imports from the Kingdom falling to a 14-month low.