BRICS member India has surpassed Saudi Arabia as Europe’s biggest supplier of refined fuel. The data comes from global trade intelligence firm Kplr. Europe’s refined oil imports from India are predicted to exceed 360,000 barrels per day, due to new Western sanctions on Russian oil.
Saudi Arabia is one of the top oil producers in the world, and its premium status in the oil trade has existed for decades. However, now that a major player in Russia is out for Europe, the continent needs a new alternative to obtain fuel supply. Reuters first reported that Europe imported 154,000 barrels of oil per day from Indian refiners before the Russia-Ukraine war. Those imports surged to 200,000 after the European Union banned Russian oil on February 5. Furthermore, Kpler further estimated that India’s Russian oil imports are expected to exceed 2 million barrels a day next April, amounting to 44% of India’s overall oil imports.
Russia is currently the biggest oil importer to India. However, the US sanctions on Russia for invading Ukraine have allowed developing countries to buy Russian oil at discounted prices. India saved nearly $7 billion from 2022 to 2024, procuring oil at cheaper rates from Russia. It saved billions through exchange rates as the settlements were cleared in local currencies, not the US dollar.
Despite India surpassing the Kingdom of Saudi Arabia, the latter plans to only further boost its oil production. Indeed, OPEC+, led by Saudi Arabia, plans to pump more oil from December. They’ll add 180,000 barrels daily and undo current cuts by 2025. This is happening even though OPEC expects lower oil demand growth. The increase in oil production could allow the country to rebound and offer more oil.
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In addition to this plan by OPEC, Saudi Arabia’s leading national shipping company, Bahri, also inked a $1 billion deal to purchase nine advanced oil tankers from Capital Maritime and Trading Corporation (CMTC) headquartered in Greece this past summer. The $1 billion deal allows Bahri to acquire nine Very Large Crude Carriers (VLCCs) from CMTC. The new carriers to Saudi Arabia will modernize Bahri’s fleet ensuring smooth and faster oil transport to other countries, which supports the country’s plan to boost oil production.
