India further ups Russian crude imports as EU’s price cap kicks in: SP Global Commodity Insights

New Delhi: Russia’s seaborne crude oil exports were hardly changed in November at just over 3 million barrel per day after flows to India surged to a record high, absorbing barrels lost from Europe where imports sank to all-time lows ahead of the European Union’s December 5 import ban move and G7’s price cap on the Russian oil, S&P Global Commodity Insights said in a note quoting tanker tracking data.

Seaborne exports of Russian crude oil averaged 3.07 million barrel per day in November, according to S&P Global Commodities data, down from 3.09 million in October and just below the pre-war average of 3.1 million in January and February. For the record, the Russia-Ukraine war started in late February.

Notably, while Russian crude oil flows to the European Union slumped 308,000 barrel per day to average a record low of 464,000, Indian refiners stepped up their buying of Russian oil by 272,000 barrel per day to a record 1.17 million, S&P Global Commodity Insights note said on Monday.

India’s crude oil imports from Russia have increased manifold in the past few months so as to secure the country’s energy security. A large portion of India’s energy demand is met through imports.

In early September, the G7 countries agreed to the future implementation of a price cap on oil exports from Russia to limit its largest source of income. Transportation services such as shipping and insurance were to be allowed for oil exports from Russia only if oil is purchased below or at the price cap.

According to the president of the European Commission Ursula von der Leyen, the EU agreement on an oil price cap, coordinated with G7 and others, will reduce Russia’s revenues significantly.

“It will help us stabilise global energy prices, benefitting emerging economies around the world,” the President had said earlier this month.

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