Russian ESPO Blend oil flow suddenly "reversed", India increased purchases, why did China lose its throne?

In July 2024, India surpassed China to become Russia's largest oil customer.

A Russian oil loading port. (Source: The Moscow Times)

The reason is that demand from refineries in the world's second economy has decreased, due to lower profits from fuel processing.

Last month, New Delhi imported a record 2.07 million barrels of oil per day from Moscow, up 4.2% from June 2024 and 12% from the same period last year.

In total, Russia accounted for 44% of India's total oil imports last month.

Meanwhile, according to Chinese Customs data, the country imported only 1.76 million barrels of oil per day from Russia last month.

Indian refiners have stepped up imports of Russian oil at discounted prices after Western countries imposed sanctions on Russia and reduced its energy imports.

The South Asian country's demand for Moscow's oil is growing, according to a Reuters source.

Overall trade between the two countries has also increased since the conflict in Ukraine in February 2022. India mainly imports crude oil and fertilizers to control domestic inflation.

India's increased purchases of Russian oil have shifted the flow of ESPO Blend from its traditional customer China to South Asia.

ESPO oil volumes to India jumped in July 2024, to 188,000 barrels per day, when larger Suezmax tankers were used.

Refineries in northern China are traditionally the biggest buyers of ESPO, but their demand has recently fallen as domestic fuel consumption has fallen.

Source: https://baoquocte.vn/dong-chay-dau-espo-blend-cua-nga-dot-ngot-dao-chieu-an-do-tang-mua-vi-sao-trung-quoc-mat-ngoi-vi-283640.html