FX.co ★ China and India buy more Russian oil

Russia overtook Saudi Arabia to become India's second-largest supplier of crude oil last month.

The average daily rate of Russian oil exports to India stood at 819,000 barrels, according to the data, which compared with a meager 277,000 barrels daily in April.

According to a report by a Finnish environmental agency, Indian buyers now account for 18% of Russian crude oil exports. What is more interesting, is that some of the fuel Indian refiners produce using Russian crude is then exported, with some of it eventually ending up in the United States.

Russian crude has been trading at a steep discount reaching $30 to Brent since the start of the war in Ukraine, which has made it especially attractive for large importers such as India and China.

Both countries have substantially increased their intake of Russian oil over the last three months. India has imported five times the amount of all the Russian crude it bought in the whole of 2021. Imports of Russian oil since the start of 2022 have totaled 60 million barrels versus 12 million barrels for the entirety of 2021.

India is currently looking to secure six-month supply contracts with Rosneft right now, despite warnings from the United States to stop buying so much Russian oil. The country relies on imports to satisfy more than 80% of its crude oil demand, which makes it particularly vulnerable to international price rallies and a natural fan of bargains such as Russian crude.