India has become Europe's largest supplier of refined fuels

Kpler's data shows that India has now emerged as Europe's biggest supplier of refined fuels this month, even as it continues to purchase unprecedented levels of Russian crude oil. Europe's dependence on Indian crude oil products has increased since the ban on Russian oil, and Europe's refined fuel imports from India are expected to exceed 360,000 barrels a day, surpassing those of Saudi Arabia. However, this development has both positive and negative implications for the European Union. On the one hand, the EU's need for alternative sources of diesel has increased after cutting off direct flows from Russia, but this boosts demand for Moscow's barrels and results in additional freight costs. Conversely, this also translates to heightened competition for Europe's oil refiners, who are unable to procure affordable Russian crude, leading to increased scrutiny about the origin of the region's diesel imports.

According to Kpler's data, it is anticipated that Russia's crude oil deliveries to India in April will exceed 2 million barrels per day, which represents almost 44% of the country's overall oil imports. Russia became a significant supplier to India for the first time in FY23 when it began supplying oil at discounted rates during the Ukraine conflict. Despite the West's concerns about India's imports from Russia during the war, India has taken a strong stance, stating that it considers all options to achieve energy security.According to the data provided by the Union Ministry of Commerce and Industry for the month of February, Russia emerged as the leading crude oil exporter to India in terms of value. The total value of crude imports from Russia amounted to $3.35 billion, followed by Saudi Arabia at $2.30 billion and Iraq at $2.03 billion.Western countries implemented a price cap of $60 per barrel to limit Russian oil revenues while keeping the oil flowing to avoid a global price shock.