As the effects of Moscow’s invasion of Ukraine change trade flows, India has pushed into a niche of the Russian oil market that was once dominated by China and taken a record amount of supplies of a Far Eastern grade.
According to dealers and shipbrokers, six vessels carrying the Russian crude known as ESPO were en route to refineries in the South Asian country in August. That is approximately one-fifth of all monthly shipments and is the most cargoes India has bought since the stream was first established.
“ESPO crude is now becoming a consistent flow for India, a nation that for years didn’t care much for the variety, “Emma Li, an analyst at Vortexa Ltd., said. “The trip to India will take longer, but shipments may still occur as long as the price remains alluring and no actual bans are in place to obstruct trade.”
In the wake of the invasion, India has emerged as a significant consumer of Russian energy, snatching up millions of barrels of discounted crude that Europe and the US had avoided.
The third-largest oil importer increased its imports of the flagship Urals crude, which flows from western Russia, while the crisis dragged on. Now, it is competing for ESPO, an east-bound, distillate-rich grade that Chinese consumers generally prefer.