Posted 4/11/2024, 9:38:18 AM
India Becomes Top Buyer of Discounted Russian Oil, Risks Dependence on Imports Amid Conflict
- India has become the 2nd largest importer of Russian oil behind China, buying at discounted prices compared to market rates
- Cheaper Russian oil imports have helped India economically - reducing import costs, keeping domestic fuel prices low, giving fiscal savings
- India processing Russian oil and re-exporting fuel has helped prevent a global supply crunch and kept oil supply flowing
- India's demand for oil will drive 1/3rd of projected global increase through 2030 - its refining capacity is expanding faster than any country besides China
- But risks loom if conflict widens in oil-producing regions; India's domestic production is declining so imports will remain crucial