CREA in the latest report said India, the world’s third largest oil-consuming and importing nation, in October bought Euro 2 billion worth of crude oil from Russia, down from Euro 2.4 billion in the previous month.
“China has bought 47 per cent of Russia’s crude exports (in October), followed by India (37 per cent), the EU (6 per cent), and Turkey (6 per cent),” it said.
“India was the second-largest buyer of Russian fossil fuels in October, contributing 19 per cent (EUR 2.6 billion) to Russia’s monthly export earnings from its top five importers.An estimated 77 per cent of India’s imports (valued at EUR 2 billion) comprised crude oil.”
In September, India contributed 21 per cent (EUR 2.8 billion) to Russia’s monthly export earnings from its top five importers.
Almost 85 per cent of India’s imports (valued at EUR 2.4 billion) comprised crude oil.
“From December 5, 2022, until the end of October 2024, China purchased 46 per cent of all Russia’s coal exports, followed by India (17 per cent), Turkey (10 per cent), South Korea (10 per cent), and Taiwan (5 per cent) to round off the top five buyers list,” the agency said.
India is more than 85 per cent dependent on imports to meet its crude oil needs.
In October, the discount on Russian Urals grade crude oil increased 77 per cent to an average of USD 5.14 per barrel compared to Brent crude oil.
The discounts on the ESPO grade narrowed by 5 per cent and traded at an average discount of USD 4.58 per barrel, while that on the Sokol blend widened by 8 per cent to USD 6.77 a barrel.
According to CREA, 34 per cent of Russian seaborne crude oil and its products in October were transported by tankers subject to the oil price cap.
The remainder was shipped by ‘shadow’ tankers and was not subject to the oil price cap policy.
Cargoes of Russian crude can access western services like insurance and shipping only if sales are capped below USD 60 a barrel.
To circumvent this, a dark or shadow fleet of oil tankers emerged.
The shadow fleet consists of second-hand decrepit oil tankers with opaque ownership structures that make it difficult to ascertain who controls them or forces them to follow Western laws.
CREA said, “83 per cent of the total value of Russian seaborne crude oil was transported by ‘shadow’ tankers, while tankers owned or insured in countries implementing the price cap accounted for 17 per cent of the total value of Russian crude exported in October”.
There have been calls given for preventing growth in ‘shadow’ tankers that are immune to the oil price cap policy.
