India’s daily crude oil requirement is about five million barrels, or about 1,800 million barrels per year, ET has learned. And it is a well-known fact that 85% of India’s crude oil needs are met by imports. For the financial year 2020-21, India’s oil imports stood at 1,440.3 million barrels; while for the current fiscal year, India has already imported 1289.3 million barrels or 175.9 MMT.
Even with the announced one-third cuts, the EU’s dependence on Russian gas will remain significant. For gas itself, Europe remains the largest regional importer of Russian natural gas, accounting for almost 75% of Russia’s total natural gas exports. The recipients are Germany and Italy. Exceptions and exclusions have been built into the design of the sanctions so that Europe can continue to use and pay for Russian crude and gas, sources said.
China and Japan are among the top 10 destinations, together accounting for about 10%, or 882 billion cubic feet, of Russia’s natural gas exports.
India’s main sources of crude oil imports are: Iraq – 23%; Saudi Arabia – 18%; United Arab Emirates – 11.3%; Nigeria – 8% and USA – 7.3% It can be highlighted here that Russia is not among the top 10 sources of Indian crude imports.
Russian crude imports represent less than 1% of Indian consumption. India imported only 0.419 million metric tons (MMT) of crude oil from Russia, compared to the overall crude oil imports of 175.9 MMT this fiscal year.
Purchases of two to three million barrels of Russian crude by Indian refiners ignore the fact that two million barrels is not enough to meet consumption needs for even half a day, experts said. Other contracted quantities are to be delivered in different months – March, April and May. In total, even if this adds the volumes through May, they would barely cover India’s energy needs for two days. Often two million barrels is just one cargo, a Very Large Crude Carrier (VLCC), not even enough for a Very Large Crude Carrier (ULCC).
These imports are based on the commercial and operational decisions of Indian refiners, for the smooth running of refining operations, at affordable costs and the transactions are most often done with traders, learned ET
As a strategic imperative, India must ensure its energy security. This will go through the diversification of sources. Purchases from the United States increased. All of last year was 14.4 MMT. This year, in the first 10 months, imports are 14 MMT. In proportion, the United States now represents 8% against 7.3% last year. Indian refiners will buy about 3 more MMT from the United States this year, or about $2.25 billion, or more than $10 billion for the year handed over to the United States for crude
India also needs to source crude at the best possible competitive rates to reduce the burden on citizens. High prices at the pump are hurting livelihoods in both India and the United States, experts have pointed out.
Export of crude oil (HS 2709) from Russia to the world
2021- USD 111 billion (231 million tons)
The top 5 importers included the Netherlands – USD 17.3 billion (37.3 million tons); Germany – 9.2 billion USD (19.1 million tons).
2020- USD 72.5 billion (239 million tons)
The top 5 importers included the Netherlands for USD 9.4 billion (31.7 million tonnes); Germany – 6.2 billion USD (21.8 million tons); Poland – 4.1 billion USD (14.8 million tons)