Russia's oil pulls the rug out from under the feet of Iraq and Saudi Arabia
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Shafaq News/ It seems that Russian oil is on its way to the Indian and Chinese markets at the expense of Iraq and Saudi Arabia's share in the largest oil consuming region in the world, as refineries in India buy cheap Russian barrels in a large way.
India's voracious appetite for low-priced Russian oil is eroding the dominance of traditional suppliers from the Middle East, Africa and the United States in one of the world's most profitable markets.
The share of the Eurasia region, which includes Russia, in India's total imports of crude oil reached a record level of 18.8 percent during the period from April to June, compared to 3.4 percent in the previous twelve months.
The data showed that oil imports from Russia rose 15.5% in June compared to May, while imports from Iraq and Saudi Arabia fell by 10.5% and 13.5%, respectively, bringing the Middle East's share to 56.5% from 59.3%.
Russia remained the second largest oil supplier to India after Iraq, while Saudi Arabia remained in third place for the second month in a row.
Cheaper Russian oil reduces losses to India's state-run refineries that sell fuel at low prices in the domestic market, while adding to the profits of India's private companies Reliance Industries Limited (RELI.NS) and Nayara Energy, which export most of their refined products.