Europe is guzzling diesel from India, a key buyer of Russian oil
Russian crude. The region’s imports of diesel from India, one of the biggest buyers of Russian crude, are on course to soar to 305,000 barrels a day, the most since at least January 2017, data from market-intelligence firm Kpler show. While it’s not possible to say with certainty that the molecules originated in Russia — India also processes oil from elsewhere — Moscow’s deliveries have given Indian refineries the ability to produce abundant diesel and boost exports.
Arrivals into Europe in November include a rare shipment from Mumbai-based Nayara Energy Ltd., which imported almost 60% of its crude from Russia this year, according to Kpler. Reliance Industries Ltd., Europe’s top supplier of Indian diesel, draws more than third of its crude from Russia, the figures show. The surge in diesel imports from India also illustrates a fundamental shift in oil trading in the wake of the Kremlin’s war in Ukraine.
A year ago, Russia was Europe’s top supplier of diesel, a fuel vital to the industrial and transport sectors. The European Union banned most seaborne imports of Russian crude in December and oil products in February. In response, Europe and the UK have sought diesel supplies from other markets.
India is helping to fill a supply gap as European imports from the US, Turkey and Saudi Arabia slip in November. Arrivals of Saudi diesel are set to drop to about 94,000 barrels a day, the lowest since February 2020. The “availability of Saudi barrels has fallen sharply in October and November due to planned local refinery maintenance, boosting interest for Indian diesel," said Eugene Lindell, head of refined products at industry consultant Facts Global Energy.
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