Why did india reduce the supply of crude oil from Russia?
After the US ban on Russian crude oil, Russia's oil exports to india have decreased by about 25 percent, while oil imports from America have increased by up to 100 percent. This reflects India's commitment to increase energy purchases from America to $ 25 billion.
india is buying oil from America and Saudi
Citing data from energy cargo tracker Vortexa, Russian ports loaded an average of 1.07 million barrels per day (MBD) of crude oil for india during february 1-20, which is less than the 1.4 MBD loaded in January. In contrast, crude oil loading of US ports for india increased from 0.11 MBD in january to 0.2 MBD.
Similarly, Saudi Arabia's crude oil exports to india also increased from 0.77 mbd to 0.91 mbd during february 1-20, while Iraq's exports increased from 0.8 mbd to 1.08 mbd. UAE's exports to india decreased from 0.48 mbd to 0.31 mbd compared to last month.
Loading of Russian crude oil for india decreased
According to Vortexa analyst Rohit Rathod, we are seeing that exports from russia to india have decreased, while other suppliers are increasing exports to compensate for this. india can increase imports from America to meet the shortage of Russian light sweet ESPO blend cargo. Loading of Russian crude oil for india has been affected due to the US sanctions imposed on Russia.
Somewhere, US President donald trump is pressurizing india to supply more and more NG from America so that it helps in reducing the imbalance in trade between the two countries. After Trump's meeting with prime minister Modi this month, Foreign Secretary vikram Misri said India's US energy purchases would rise by two-thirds to $25 billion in the near future.
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